"However, once full employment is reached, firms seeking labour productivity gains start to employ higher real wages where they once would have merely hired more workers."
This idea is speculative; productivity gains were high in the 1930s and low in the 2010s. The chart at the top of the post is a nominal wage chart; real wages don't seem to relate much to labor market slack.
"However, once full employment is reached, firms seeking labour productivity gains start to employ higher real wages where they once would have merely hired more workers."
This idea is speculative; productivity gains were high in the 1930s and low in the 2010s. The chart at the top of the post is a nominal wage chart; real wages don't seem to relate much to labor market slack.