The Guardian:
Low pay is breaking Britain's public finances: the evidence can't be denied
23 October 2014
On Wednesday Steve Machin, research director at the LSE's centre for economic performance, laid out to a meeting of economists the collected evidence on the nature of falling pay - and warned that this is beginning to look not like a slow recovery in wages, but a permanent, structural feature of the UK economy. He showed how the group-think of economic forecasters has consistently and wildly over-estimated an expected increase in wages: the OBR forecast for March this year was a wage rise of 4.3 percent. What happened has been a continuing real fall.
This article was published by the Guardian on October 23, 2014
Link to article here
Related publications
Real wages continue to fall in the UK, David Blanchflower and Stephen Machin, CEP Real Wages Updates No.001, September 2014
Falling real wages, David Blanchflower and Stephen Machin. Article in CentrePiece Volume 19, Issue 1, Summer 2014
Related links
Stephen Machin webpage
Labour Markets Programme webpage