Wages are imperfect window into health of U.S. labor market

Up until recently the U.S. labor market has been viewed as on the uptick, especially after research conducted by the U.S. Federal Reserve cemented the idea.

Up until recently the U.S. labor market has been viewed as on the uptick, especially after research conducted by the U.S. Federal Reserve cemented the idea. But former Federal Reserve employee and current Economics Professor Bart Hobijn's research holds that there's a variable that comes into play. From Bloomberg, April 3, 2016:

In a recent research paper with Bart Hobijn, an economics professor at Arizona State University, and Benjamin Pyle, a research associate at the San Francisco Fed, she argued that the disproportionate firing of low-wage workers during the 2008-2009 recession propped up aggregate wage measures at the time. Bringing those workers back into the labor force is now a drag on pay growth. It’s amplified by the retirement of those born during the baby boom between 1946 and 1964, who make up more than 20 percent of the American population.

About Bart Hobijn.