A maskless shopper browses for produce in the Erewon Market in the Abbott Kinney / Venice neighborhoods of Los Angeles, CA on June 15, 2021. /Sipa USA/Brian Feinzimer
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Sipa USA/Brian Feinzimer
Featured

US workers are getting large raises, but not enough to keep up with higher inflation

Jason Furman (PIIE) and Wilson Powell III (Harvard Kennedy School)

Prices have risen faster than worker pay, causing real worker compensation to fall below its pre-pandemic level. Whether the trend will reverse and real compensation will bounce back depends on the labor market recovery, whether employers increase pay, and the rate of inflation.

The Peterson Institute for International Economics building is closed to staff and visitors until further notice. PIIE personnel are working remotely, with access to telephone messages.

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Sipa USA/Brian Feinzimer

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A maskless shopper browses for produce in the Erewon Market in the Abbott Kinney / Venice neighborhoods of Los Angeles, CA on June 15, 2021. /Sipa USA/Brian Feinzimer
Sipa USA/Brian Feinzimer
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Worker pay has fallen in 2021 when adjusted for inflation (featured)

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Bookstore

Facing Up to Low Productivity Growth

Facing Up to Low Productivity Growth

Edited by Adam S. Posen (PIIE) and Jeromin Zettelmeyer (PIIE)

February 2019
The State Strikes Back: The End of Economic Reform in China?

The State Strikes Back: The End of Economic Reform in China?

Nicholas R. Lardy (PIIE)

January 2019