Job Creation Examined in September Fed Letter
CHICAGO — Job growth seems to be occurring in high- and low-wage sectors in a fairly typical way given where the economy is in the employment cycle, according to Chicago Fed Senior Economist Dan Aaronson and Associate Economist Sara Christopher in the September Chicago Fed Letter (647KB).
Aaronson and Christopher present several summary measures that gauge the extent to which employment is growing in higher-paying sectors of the economy and how it compares with recent history.
The authors conclude that the share of job growth in higher-paying sectors typically responds favorably to overall employment growth and, conversely, falls when labor markets weaken. The research is important because it provides historical context for recent claims regarding the "quality" of job creation during the beginning of the current employment expansion.
To read the entire research, see the September 2004 Chicago Fed Letter (647KB).