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Michael R. Strain

Don’t Blame Business for Slow Wage Growth

Productivity levels are the main culprit, even if employers’ restrictive policies also play a role.

She’d like a raise with that. 

She’d like a raise with that. 

Photographer: Justin Sullivan/Getty Images

Are wages determined by market forces, or do businesses get to decide what pay they offer to workers?

This question gets at the heart of a lot of the debate about the economy. Why has wage growth been so sluggish for so many years?