Even if real wages increase in some coastal cities, surplus labor could keep the national average flat.

Even if real wages increase in some coastal cities, surplus labor could keep the national average flat.

Nominal wages may increase, while real wages stagnate, owing to higher inflation.

So the real question is, What drives wages?

So the real question is, What drives wages?

These are efficient responses to changes in real wages.

Real wages are set to plummet by 10 this year.

Chinese wages are even lower, at just 4 of the western German average.

Currently their nominal wages are only about 7 of the West European average.

In real terms, wages no longer rose (indeed, the average real wage has been stagnant for 25 years in the US), and a growing share of manpower (currently around 15 ) was without steady employment.

Real wages should grow fourfold by 2010 pensions must also grow accordingly.

Vietnam witnessed a dramatic fall in poverty, while in Mexico real wages fell.

So far this year, real wages for non supervisory workers fell by nearly 0.5 .

Indeed, despite a 1.3 drop in real wages in 2011, unit labor costs remained unchanged.

Deflation also magnified the real value of wages and salaries, thereby fueling layoffs and unemployment.

These are efficient responses to changes in real wages. No intervention by government is needed.

Deflation also magnified the real value of wages and salaries, thereby fueling layoffs and unemployment.

Wages throughout the economy have soared, with the average increase likely to hit a whopping 6 this year.

Even income policies that lift wages, and hence labor income and consumption, are a better source of domestic growth than currency depreciations (which depress real wages).

When a positive technological shock raises real wages, people will work more, causing output to surge.

When a positive technological shock raises real wages, people will work more, causing output to surge.

In any case, the Chinese wage story is much more complicated than it might seem. Nominal wages may increase, while real wages stagnate, owing to higher inflation.

The PRC s population is aging, real wages are rising, and growth is moderating toward more sustainable rates.

As a result, total labor income the product of jobs times hours worked times average hourly wages has fallen dramatically.

This has, indeed, already happened in some developed countries in the ten years that have passed since the signing of the North American Free Trade Agreement, average real wages in the US have actually declined.

Median real income has fallen by over 1,500 in real terms, with American families being squeezed as wages lag behind inflation and key household expenses soar.

The problem is that real people are not just average, so the real question concerns how the benefits derived from computers are distributed.

Beijing, Shenzhen, and Shanghai raised their minimum wages sharply in the last three years by 22 on average in 2010 and 2011.

But these statistics mask a glaring fact the average American family is worse off than it was three and half years ago. Median real income has fallen by over 1,500 in real terms, with American families being squeezed as wages lag behind inflation and key household expenses soar.

In the last decade, the average real (inflation adjusted) return on deposits has been near zero.

If prices and thus average debt service capacity fall, the real burden of the debt increases.

The unemployment rate is around 11.7 , which is above the EU average, while real GDP growth in 2011 was 8.0 , five times the euro zone average.

Fourth, private consumption growth in the last few quarters does not reflect growth in real wages (which are actually falling).

Of course, migration creates real challenges for communities and can lead to job losses and lower wages for native workers.

The geometric average real return of the US stock market was 6.7 , but the median geometric real return for the other countries was only 4.7 .

Are wages too high?

Scarce labor drives wages.

The culprit in this pessimistic view is the so called Balassa Samuelson effect rapid productivity growth in the accession candidates' tradable sectors export manufacturing, for example is pushing up real wages throughout their economies, including in non tradable sectors like services. This overall rise in real wages in the face of lower productivity growth for the service sector boosts relative prices and keeps inflation above the eurozone average.

The new business cycle also embeds a monetary policy that replaces concern with real wages with a focus on asset prices.

Siegel himself recently projected only a 6 average real return for US stocks over the next four decades.

Consequently, wages are market sustainable.

A positive effect on wages

50 increase in minimum wages

And the average hourly wages for all employees on private non farm payrolls posted an annual increase of 2.5 in October, the biggest since 2009.

The current 12th Five Year Plan calls for annual wage increases to average at least 13.4 this year, wages are rising at an average rate of 18 , which will squeeze out industries characterized by obsolescence or overcapacity.