FYI: There recently has been a lot of concern about stagnant wages. Most of the discussion has focused on the median and average hourly wage, but these measures are sensitive to changes in the mix of occupations. For example, consider how average wages move during recessions. Demand for labor falls during recessions, and increased competition for the remaining jobs can push wages down. However, average wages often rise during recessions as firms lay off their less-skilled (and lower paid) employees while retaining their higher-skilled (and better paid) employees. In addition, over time there has been a steady up-skilling of the workforce, which has pushed the average wage higher. This article answers the question: What fraction of recent changes in the average wage is due to changes in the occupation mix versus changes in wages within occupations?
Regards,
Ted
http://www.ritholtz.com/blog/2015/03/are-wages-flat-or-falling-decomposing-recent-changes-in-the-average-wage-provides-an-answer/print/
