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To: Don Lloyd who wrote (192)	4/24/2003 4:32:43 PM
From: gpowell	Read Replies (1) \| Respond to of 445

A starting point in looking at real wages is determining labor productivity. Add to this that there are high transaction costs for both buyers and sellers in the labor market, with the result being fewer transactions and lower efficiency. Further, much of the the labor market is composed of bilateral monopolies. These two observations would allow for persistent inefficiencies to exist.

To: Don Lloyd who wrote (192)	4/24/2003 8:03:12 PM
From: gpowell	Read Replies (1) \| Respond to of 445

Just to add one more thought.... Wages are only one part of total compensation - so one would have to normalize the data to account for non-wage compensation. Examples of non-wage compensation are the well known health and retirement benefits, but also items such as flexibility of work schedule, expectation of the stability and longevity of the job, and the pleasantness of the work environment. Example: I good friend of mine demanded and received a 20% increase in pay to work for a notoriously arrogant and obnoxious boss - same job duties as before.