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CentrePiece Article
Wage stagnation and the legacy costs of employment
Brian Bell
November 2015
Paper No' CEPCP458:
Full Paper (pdf)

CentrePiece 20 (2) Autumn 2015

Tags: decoupling; wages; productivity; compensation; labour income share

Although UK real wages have been stagnant for over a decade, there has been a notable increase in nonwage compensation. But as Brian Bell reveals, this rise consists largely of special payments to fund deficit gaps in 'defined benefit' pension schemes - and most of these schemes have been closed to new members for years.