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Wage Push Inflation

What is 'Wage Push Inflation'

Wage push inflation is a general increase in the cost of goods that is preceded by and results from an increase in wages. To maintain corporate profits after an increase in wages, employers must increase the prices they charge for the goods and services they provide. The overall increased cost of goods and services has a circular effect on the wage increase; eventually, as goods and services in the market overall increase, then higher wages will be needed to compensate for the increased prices of consumer goods. Next Up Justified Wage Living Wage Cash Wages Maximum Wage

Explaining 'Wage Push Inflation'

Companies can increase wages for a number of reasons. The most common reason for an increased level of wages is an increase to the minimum wage. The federal and state governments have the power to increase the minimum wage. Consumer goods companies are also known for making incremental wage increases for their workers. These minimum wage increases are a leading factor for wage push inflation. In consumer goods companies especially, wage push inflation is highly prevalent, and its effect is a function of the percentage increase in wages.

Industry Factors

Industry factors also play a part in driving wage increases. If a specific industry is growing rapidly, companies might raise wages to attract talent or provide higher compensation for their workers as an incentive to help business growth. All such factors have a wage push inflation effect on the goods and services the company provides.


Further Reading


Monetarism, budget deficits, and wage push inflation: the cases of Italy and the UK
ojs.uniroma1.it [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

The concept of wage-push inflation: development and policyThe concept of wage-push inflation: development and policy
www.tandfonline.com [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

Is Chinese Inflation Pushed by Wages: An Empirical Research Based on Excess Wage <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200808010.htm' />Is Chinese Inflation Pushed by Wages: An Empirical Research Based on Excess Wage [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-JJYJ200808010.htm'>PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

Tax push inflation in a unionized labour marketTax push inflation in a unionized labour market
www.sciencedirect.com [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

A Test For Demand-Pull Or Wage-Push Inflation: The Chilean CaseA Test For Demand-Pull Or Wage-Push Inflation: The Chilean Case
www.jstor.org [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

Thoughts on Inflation: The Basic ForcesThoughts on Inflation: The Basic Forces
www.jstor.org [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

The Wage-Push Inflation Thesis, 1950-1957: CommentThe Wage-Push Inflation Thesis, 1950-1957: Comment
www.jstor.org [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …

Cost-push shocks and inflation: An empirical analysis from the economy of PakistanCost-push shocks and inflation: An empirical analysis from the economy of Pakistan
academicjournals.org [PDF]
… in recent discussions of the so-called vicious circle of exchange rate depreciation and inflation).8 The … the UK, and the beta coefficient is some- what larger, the results on wages for Italy … On the basis of these statistical results alone, it would appear that wage push has been the …


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