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While in the long run real wage growth depends on productivity and the distribution of gains from productivity, over shorter time horizons wage growth can be determined by the supply and demand for labor. When there is extensive slack in the economy—such as during a recession or the early phase of a recovery, when labor and capital are underutilized—wage growth can be temporarily lower. At these times, there are more unemployed workers and hiring demand is low, both of which put downward pressure on wages.
Explore state-level variation in child exposure to food insecurity over the past decade.
A new Hamilton Project data interactive, “Chronic Absence: School and Community Factors,” examines the factors that affect learning at local elementary, middle, and high schools across the United States.