HKS Affiliated Authors


November 3, 2022, Opinion: "The pace of nominal wage or compensation growth over the last six months is generally consistent with about a 4.5 percent inflation rate. The latest data suggests that productivity is largely on track with where it was prior to the pandemic with some downside risk that could put additional upward pressure on inflation. Moreover, the growth of labor costs has largely tracked price growth, so there is little reason to believe that business margin compression will meaningfully lower inflation without a slowdown in compensation growth or that real wages will easily return to their previous trajectory."