Wage growth trends prove unpredictable since mid-1990s, impacting labor market.
The article "Difficulties Forecasting Wage Growth" explores the challenges of predicting future wage trends based on factors like labor market conditions and business reports. The researchers analyzed three models for forecasting wage growth using data on employee compensation. They found that changes in compensation growth have been unpredictable since the mid-1990s due to a mix of factors like labor market slack, bargaining power, productivity, and inflation.