The capital intensity factor that contributes to the United States Skilled Worker’s Average Wage Stagnation

DOI

10.2991/hsmet-19.2019.76How to use a DOI?

Keywords

Productivity, Labor Wage, Capital Intensity, wage stagnation

Abstract

Over the past 45 years, whereas the GDP has grown, skilled workers in America have experienced trivial increase in real wage. We find the stagnation a result of two periods of increase and one period of decrease in wage. This research aims to analyze this phenomenon and contributes to the study of the causes of wage fluctuation through a microscopic lens. This paper is unique from previous studies in methodology. We present our analysis by combining both macro and micro indicators. We incorporate capital investment and Marginal Revenue Productivity Theory, which we relate to productivity, in our study. Further, we use a multiple linear regression to establish a more solid quantitative support to the discussion. The variables we use in the regression are work hours, productivity, capital input, capital intensity, and real wage. The paper finds a strong correlation between average wage and capital intensity. This conclusion could help policymakers to design policies beneficial to skilled workers in the future.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Wushuo Ding
PY  - 2019/07
DA  - 2019/07
TI  - The capital intensity factor that contributes to the United States Skilled Worker’s Average Wage Stagnation
BT  - Proceedings of the 4th International Conference on Humanities Science, Management and Education Technology (HSMET 2019)
PB  - Atlantis Press
SP  - 419
EP  - 425
SN  - 2352-5398
UR  - https://doi.org/10.2991/hsmet-19.2019.76
DO  - 10.2991/hsmet-19.2019.76
ID  - Ding2019/07
ER  -