An Essay on Real Wage Index Numbers
Real wage index numbers have been used to measure movements in the standard of living of
the typical worker. This paper describes some of these indicators for the United States and England.
A new real wage index is proposed that resembles the sliding scale used to adjust wages in certain
industries years ago. This new index is applied to U.S. manufacturing industry and it suggests a fall
in real wages by about 40 percent since 1960. Workers’ distributional position in U.S. manufacturing
has deteriorated considerably.