Why economists say you should ask for a raise in the New Year (via CNBCMakeIt)
, inflation has been rising and cutting into how much workers are able to buy with their paychecks.
"For about 40 years, the median real wage in the U.S. has been pretty stagnant," Erica Groshen, senior economics advisor at the Cornell University School of Industrial and Labor Relations and former commissioner of the Bureau of Labor Statistics told CNBC Make It. "Generally speaking, wage inflation lags consumer price inflation. Conditions are probably better than we've seen in a very long time for that to happen...
When it comes to a raise, "It never hurts to ask," says Groshen. "For a long time, people have been afraid to ask." And Josh Bivens, director of research at the Economic Policy Institute says that as workers notice their paychecks are not going as far as they used to due to inflation, they should be motivated to have that"That gives workers not just the desire to have better wages because inflation is rising, but also a little bit of leverage that has been quite rare over the past several decades," he says. "Workers have employers over a barrel for a little while.
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