Economics
U.S. Wages Rose in Covid Era Despite Recent Inflation Highs
- Dallas Fed blog post says real wages grew in past two years
- Jason Furman and Paul Krugman recently debated this on Twitter
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Has inflation really eroded Americans’ wage gains in the pandemic? Some regional Federal Reserve economists say no.
Even though decades-high inflation has eaten into earnings in recent months, the net effect over the past two years is still positive, according to a blog post from the Dallas Fed Tuesday. Researchers found wages rose during the period when adjusting for changes in the makeup of the labor force.