Wage Measurement Questions Raised By An Incomes Policy

Donald Nichols

No 292588, SSRI Workshop Series from University of Wisconsin-Madison, Social Systems Research Institute

Abstract: A wage stabilization program encounters many of the fundamental wage measurement problems that also face the Bureau of Labor Statistics as well as researchers who use wage data. Because millions of dollars are at stake in the stabilization program administrator's decisions, enormous pressure is brought to bear to find solutions to these problems that are precise and simple, yet consistent. The record of such a program, then, provides an interesting perspective on wage measurement issues. In this paper I describe some of the wage measurement questions that arose during the Carter stabilization program of 1978-80 and the solutions to those questions that were adopted by the Council on Wage and Price Stability. Lessons for wage measurement are drawn, where appropriate, though many of the questions remain unanswered to this day. Specific problems discussed include those of how to value incentive pay, future value compensation, pay increases accompanying promotions or seniority and changes in the weights of a wage index. In the absence of precise answers to the measurement questions raised here no concrete answers will be available to questions about the nature of wage change over the business cycle or of the level of productivity growth over time. Wage measurement is at the heart of these fundamental macroeconomic issues.

Keywords: Research; Methods/; Statistical; Methods (search for similar items in EconPapers)
Pages: 26
Date: 1981-12
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/292588/files/uwmad-0008.PDF (application/pdf)

Related works:
Chapter: Wage Measurement Questions Raised by an Incomes Policy (1983)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uwssri:292588

DOI: 10.22004/ag.econ.292588

Access Statistics for this paper

More papers in SSRI Workshop Series from University of Wisconsin-Madison, Social Systems Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().