Professor! I was thinking that a better comparison would be CPI against Real Median Household Income. I know it takes some time until the data gets published... I wonder if Census has a proxy. And my reason on recommending such variable is because most employees (I believe) have dependents. So, the game is not about an employee beating inflation, but the household.
Thank you for your blog, always a pleasure to read it.
Good point. Not only do dependents matter, but their age also matters. Feeding four young kids is nowhere near as expensive as feeding four teenage boys (I know, I've done it). There is definitely more to explore here. Needless to say, just looking at some average wage is missing a whole lot.
Professor! I was thinking that a better comparison would be CPI against Real Median Household Income. I know it takes some time until the data gets published... I wonder if Census has a proxy. And my reason on recommending such variable is because most employees (I believe) have dependents. So, the game is not about an employee beating inflation, but the household.
Thank you for your blog, always a pleasure to read it.
Good point. Not only do dependents matter, but their age also matters. Feeding four young kids is nowhere near as expensive as feeding four teenage boys (I know, I've done it). There is definitely more to explore here. Needless to say, just looking at some average wage is missing a whole lot.