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May 1984

Workers’ purchasing power rises despite slowdown in wage and salary

Richard Schumann

There is no clear relationship between changes in the purchasing power of wages and salaries and the business cycle; changes in purchasing power reflect the greater volatility of price, rather than wage, changes. This article examines fluctuations in the purchasing power of wages and salaries for private industry workers, as well as for major industry and occupation categories, over the 1976-83 period.

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