What Can Wages and Employment Tell Us about the UK's Productivity Puzzle?
This paper uses individual data on employment and wages to shed light on the UK’s productivity puzzle. It finds that workforce composition cannot explain the reduction in wages and hence productivity that we observe; instead, real wages have fallen significantly within jobs. Why? One possibility we investigate is higher labour supply in this recession than in the past. Another is lower trade union membership. Alternatively, it might be driven by a fall in productivity as a result of a lower capital-labour ratio. We cannot tell whether productivity is driving wages or vice versa, but understanding why wages have fallen within jobs is at the heart of the UK's productivity puzzle.
(This abstract was borrowed from another version of this item.)
Volume (Year): (2014)
Issue (Month): 576 (05)
|Contact details of provider:|| Postal: Office of the Secretary-General, Rm E35, The Bute Building, Westburn Lane, St Andrews, KY16 9TS, UK|
Phone: +44 1334 462479
Web page: http://www.res.org.uk/
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishers.co.uk/asp/journal.asp?ref=0013-0133|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Elizabeth Cascio, 2006. "Public Preschool and Maternal Labor Supply: Evidence from the Introduction of Kindergartens into American Public Schools," NBER Working Papers 12179, National Bureau of Economic Research, Inc.
- Peter Dolton & Chiara Rosazza-Bondibene & Jonathan Wadsworth, 2010.
"Employment, Inequality and the UK National Minimum Wage over the Medium-Term,"
CEP Discussion Papers
dp1007, Centre for Economic Performance, LSE.
- Peter Dolton & Chiara Rosazza Bondibene & Jonathan Wadsworth, 2012. "Employment, Inequality and the UK National Minimum Wage over the Medium‐Term," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 78-106, 02.
- Dolton, Peter & Rosazza-Bondibene, Chiara & Wadsworth, Jonathan, 2010. "Employment, Inequality and the UK National Minimum Wage over the Medium-Term," IZA Discussion Papers 5278, Institute for the Study of Labor (IZA).
- Richard Blundell & Mike Brewer & Marco Francesconi, 2008.
"Job Changes and Hours Changes: Understanding the Path of Labor Supply Adjustment,"
Journal of Labor Economics,
University of Chicago Press, vol. 26(3), pages 421-453, 07.
- Blundell, Richard & Brewer, Mike & Francesconi, Marco, 2007. "Job Changes and Hours Changes: Understanding the Path of Labour Supply Adjustment," IZA Discussion Papers 3044, Institute for the Study of Labor (IZA).
- Christian Dustmann & Tommaso Frattini & Ian Preston, 2008.
"The Effect of Immigration along the Distribution of Wages,"
CReAM Discussion Paper Series
0803, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Christian Dustmann & Tommaso Frattini & Ian P. Preston, 2013. "The Effect of Immigration along the Distribution of Wages," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 145-173.
- Hughes, Abigail & Saleheen, Jumana, 2012. "UK labour productivity since the onset of the crisis — an international and historical perspective," Bank of England Quarterly Bulletin, Bank of England, vol. 52(2), pages 138-146.
- Crawford, Rowena, 2013. "The effect of the financial crisis on the retirement plans of older workers in England," Economics Letters, Elsevier, vol. 121(2), pages 156-159.
- Benito, Andrew & Neiss, Katharine & Price, Simon & Rachel, Lukasz, 2010. "The impact of the financial crisis on supply," Bank of England Quarterly Bulletin, Bank of England, vol. 50(2), pages 104-114.
- Peter Goodridge & Jonathan Haskel & Gavin Wallis, 2013.
"Can Intangible Investment Explain the UK Productivity Puzzle?,"
National Institute Economic Review,
National Institute of Economic and Social Research, vol. 224(1), pages R48-R58, May.
- Haskel, J & Goodridge, P & Wallis, G, 2013. "Can intangible investment explain the UK productivity puzzle?," Working Papers 11140, Imperial College, London, Imperial College Business School.
- James Banks & Rowena Crawford & Thomas Crossley & Carl Emmerson, 2012. "The effect of the financial crisis on older households in England," IFS Working Papers W12/09, Institute for Fiscal Studies.
- Brewer, Mike & Duncan, Alan & Shephard, Andrew & Suarez, Maria Jose, 2006. "Did working families' tax credit work? The impact of in-work support on labour supply in Great Britain," Labour Economics, Elsevier, vol. 13(6), pages 699-720, December.
- Jonathan Cribb & Carl Emmerson & Gemma Tetlow, 2013. "Incentives, shocks or signals: labour supply effects of increasing the female state pension age in the UK," IFS Working Papers W13/03, Institute for Fiscal Studies.
- Maria Donovan Fitzpatrick, 2012. "Revising Our Thinking About the Relationship Between Maternal Labor Supply and Preschool," Journal of Human Resources, University of Wisconsin Press, vol. 47(3), pages 583-612.
- Manacorda, Marco & Manning, Alan & Wadsworth, Jonathan, 2010.
"The Impact of Immigration on the Structure of Wages: Theory and Evidence from Britain,"
CEPR Discussion Papers
7888, C.E.P.R. Discussion Papers.
- Marco Manacorda & Alan Manning & Jonathan Wadsworth, 2012. "The Impact Of Immigration On The Structure Of Wages: Theory And Evidence From Britain," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 120-151, 02.
- Paul Gregg & Stephen Machin & Mariña Fernández‐Salgado, 2014. "Real Wages and Unemployment in the Big Squeeze," Economic Journal, Royal Economic Society, vol. 0(576), pages 408-432, 05.
- Claire Crawford & Wenchao Jin & Helen Simpson, 2013. "Productivity, Investment and Profits during the Great Recession: Evidence from UK Firms and Workers," Fiscal Studies, Institute for Fiscal Studies, vol. 34(2), pages 153-177, 06.
When requesting a correction, please mention this item's handle: RePEc:wly:econjl:v::y:2014:i:576:p:377-407. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.