An Economist Explains Why Wage Growth is Poised to Take Off
In this article, Economist Paul Ashworth predicts that the wage growth is about to pick up. His new research suggest that the current rates of wage and price inflation may be low, but the dwindling slack in the labor marker will cause a rise in wage inflation in 2014. His prediction is based on the historical Phillip curve relationship. He predicts the gap between the actual unemployment rate and the estimated longer-run equilibrium unemployment rate, would drive the growth rate of average earnings higher over the next couple of years.
http://www.businessinsider.com/wage-growth-poised-to-take-off-2014-1
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