Wage inflation and informal work

Anat Bracha*, Mary A. Burke

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


Despite the low unemployment rate in the United States, wage inflation has remained modest. This paper investigates whether hidden labor market slack in the form of informal “gig” economy work could help explain this puzzle. Using our Survey of Informal Work Participation for 2015–2016 we find that informal labor is negatively associated with wage growth at the census division level, while no such association exists between wage growth and unemployment rates.

Original languageAmerican English
Pages (from-to)159-163
Number of pages5
JournalEconomics Letters
StatePublished - Oct 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2018


  • Gig economy
  • Labor market slack
  • Survey
  • Wage inflation


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