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Wages, productivity and the changing composition of the UK workforce

Author

Listed:
  • Abel, Will

    (Bank of England)

  • Burnham, Rebecca

    (Bank of England)

  • Corder, Matthew

    (Bank of England)

Abstract

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.

Suggested Citation

  • Abel, Will & Burnham, Rebecca & Corder, Matthew, 2016. "Wages, productivity and the changing composition of the UK workforce," Bank of England Quarterly Bulletin, Bank of England, vol. 56(1), pages 12-22.
    • Handle: RePEc:boe:qbullt:0193
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    References listed on IDEAS

    as
    1. Barnett, Alina & Batten, Sandra & Chiu, Adrian & Franklin, Jeremy & Sebastia-Barriel, Maria, 2014. "The UK productivity puzzle," Bank of England Quarterly Bulletin, Bank of England, vol. 54(2), pages 114-128.
    2. Debra Leaker, 2008. "The gender pay gap in the UK," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 2(4), pages 19-24, April.
    3. Richard Blundell & Claire Crawford & Wenchao Jin, 2014. "What Can Wages and Employment Tell Us about the UK's Productivity Puzzle?," Economic Journal, Royal Economic Society, vol. 0(576), pages 377-407, May.
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    Cited by:

    1. Olga Loza & Philip Roscoe, 2024. "Making Markets Material: Enactments, Resistances, and Erasures of Materiality in the Graduate Labour Market," Work, Employment & Society, British Sociological Association, vol. 38(3), pages 684-704, June.
    2. Kristin J. Forbes, 2019. "How Have Shanghai, Saudi Arabia, and Supply Chains Affected U.S. Inflation Dynamics?," Review, Federal Reserve Bank of St. Louis, vol. 101(1), pages 27-44.
    3. Kiss, Aron & Van Herck, Kristine, 2019. "Short-Term and Long-Term Determinants of Moderate Wage Growth in the EU," IZA Policy Papers 144, Institute of Labor Economics (IZA).

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