Real Wage Decline Ended the 1981-82 Recession?
Submitted by Econbrowser
David Henderson writes in his “Reply to DeLong”:
In the 1981-82 recession, the fall in real wages helped end the recession.
I don’t see it in BLS series Nonfarm Business Sector: Real Compensation Per Hour.
Figure 1: Log nonfarm business sector compensation, deflated using nonfarm business sector deflated. NBER defined recession shaded gray; assumes last recession ends 09Q2. Source: BLS via St. Louis Fed FREDII and NBER.
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