The Fed can look to the late 1990s for guidance on how to raise wages: Average annual wage growth from 1996–2001 vs. all other years between 1979 and 2017

Wage percentile Avg. annual wage growth
20th percentile 1.75%
Median 1.66%
95th percentile 1.96%
20th percentile -0.15%
Median -0.02%
95th percentile 1.01%

Source: Adapted from Figure C in Josh Bivens and Ben Zipperer, The Importance of Locking in Full Employment for the Long Haul, Economic Policy Institute, July 2018. Wage growth is inflation-adjusted.

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