Real Wage Growth at the Micro Level

Victoria Gregory and Elisabeth Harding

No 2023-024, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper investigates patterns in real wage growth in 2022 to determine whether wages have kept up with rising price levels, and how this differs among labor market participants. Using the CPS for wages and imputing expenditure data from the CEX, we measure separately nominal wage growth and inflation rates at the micro level. We find that there is more heterogeneity in the former, meaning that when we combine them, an individual’s real wage growth is primarily driven by their nominal wage growth. In 2022, 57% of individuals experienced negative real wage growth, with older and less educated workers, as well as job-stayers, being hit the hardest. Conversely, younger and highly educated workers, as well as job-switchers, had higher real wage growth.

Keywords: inflation; real wage growth; nominal wage growth; macroeconomics; labor; consumption (search for similar items in EconPapers)
JEL-codes: E24 E31 J31 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2023-07
New Economics Papers: this item is included in nep-ger
Note: Publisher DOI: 10.20955/r.106.87-105
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Federal Reserve Bank of St. Louis Review

Downloads: (external link)
https://s3.amazonaws.com/real.stlouisfed.org/wp/2023/2023-024.pdf Full text (application/pdf)

Related works:
Journal Article: Real Wage Growth at the Micro Level (2024)
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:fip:fedlwp:96831

Ordering information: This working paper can be ordered from

DOI: 10.20955/wp.2023.024

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Scott St. Louis ().