As Labor Day approaches, we are likely to hear from a growing chorus of political, religious, academic, labor, and business leaders who agree “America needs a raise” to reverse three decades of wage stagnation and rising income inequality.
But this consensus that something needs to be done has yet to produce a clear narrative or strategy for what to do. Getting there requires an agreement on what norms should guide wage growth, an understanding of the causes of wage stagnation, and policies to address these causes in ways consistent with today’s economy and workforce.
