02055cas a2200253 a 4500 AALejournalIMF018570 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484362082 1018-5941 BD-DhAAL BD-DhAAL Abdih, Yasser. Understanding U.S. Wage Dynamics / Yasser Abdih, Stephan Danninger. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In this paper, we undertake empirical analysis to understand U.S. wage behavior since the beginning of the new millennium. At the macroeconomic level, we find that a productivity-augmented Phillips curve model explains the data fairly well. The model reveals that the upward pressure on wage growth from recent tightening in the labor market has been dampened by a persistent decline in trend labor productivity growth and the share of income that accrues to labor. These themes are reinforced and complemented at the micro-economic level. Lower regional unemployment puts an upward pressure on wages of individuals, although this effect has become weaker since 2008. But there is downward pressure on wages for individuals with occupations that are exposed to automation and offshoring, and in industries with a higher concentration of large firms. All these factors appear to play a role illustrating why it is difficult to single out any one culprit for the observed wage growth moderation. Mode of access: Internet Danninger, Stephan. IMF Working Papers; Working Paper ; No. 2018/138 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/138/001.2018.issue-138-en.xml IMF e-Library