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constant dollars

What Have Wages Really Been Doing Over the Last 50 Years?

I decided to break a rule. The BLS says that it is inappropriate to calculate seasonally adjusted wages in constant dollars. But I did so anyway. Real wages in constant dollars allow us to compare wages over time.

Average real wages (blue line) were calculated by dividing nominal weekly wages seasonally adjusted for production and nonsupervisory employees (blue collar workers) by the CPI-U All Items index and multiplying the result by 100. This index is expressed in 1982-1984 dollars and is why the blue line intercepts the nominal wage line in 1984. Read below the fold...

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