Stable U.S. wage determination reveals long-term link to labor productivity.
The study looked at what affects wages in the U.S. from 1967 to 2000. They used a model that connects wage growth to past wages, unemployment, inflation, productivity, and other job-related factors. The results show that real wages and productivity usually change together in the long run. The study found that wage determination has been steady over the past thirty years, and any recent changes in inflation and unemployment are due to factors outside of the job market.