Why Salaries Don’t Rise

Harold Meyerson, Washington Post
Job creation is up. Unemployment is down. Wages are stagnant. And economists — well, some economists — are confused.Tighter labor markets are supposed to give workers more bargaining power. To be sure, there are still millions of Americans who left the workforce during the recession and have yet to return; employers’ knowledge of their absence is probably holding wages down. But at the rate that new jobs are now popping up, we should, by all conventional metrics, be seeing at least some increase in Americans’ take-home pay.