Wages, Productivity and the Changing Composition of the UK Workforce
11 Pages Posted: 8 Apr 2016
Date Written: March 18, 2016
Over the past 30 years the composition of UK employment has changed substantially - these changes have important implications for wage and productivity growth. These ‘compositional effects’ can be more prominent during times of increased labour market change and may have dragged down on wages over the past two years. The drag from compositional effects is likely to fade as the labour market normalises, pushing up on both productivity and wage growth.
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