Inflation, wages and equality: cross-disciplinary conversations
by Paul Edwards, Charles Baden-Fuller, Christopher Pissarides, Jill Rubery, Colin Crouch and Peter Taylor-Gooby
- 10 Mar 2023
- Journal of the British Academy, volume 11 (2023)
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Abstract: Rising inflation and a wave of strikes during 2022 have aroused echoes of the 1970s. In this article, experts from the fields of economics, sociology and social policy consider what has changed, what remains the same, and what the lessons might be – with a notable degree of agreement. Raising wages, particularly for the lower-paid groups in the public sector, is likely to reduce poverty and has a very low risk of generating further price inflation. Giving in on pay will be costly, and may have to be funded by taxes in the short term. In the longer run the only way out of our difficulties will be more effective growth generated through improved productivity.
Keywords: Inflation, wages, poverty, trade unions, strikes, productivity.