I think there's another very simple, yet often overlooked, reason that wages aren't growing: information. How do you decide how much to pay an employee? It's e

I think there's another very simple, yet often overlooked, reason that wages aren't growing: information. How do you decide how much to pay an employee? It's easy. You go online and see what the median wage in your area for the role you're seeking to fill. You then aim a bit lower than that either getting a below market rate hire, or giving them a psychological victory as they negotiate their wage up to the median. That's perfectly reasonable, but it's also in effect engaging in horizontal price fixing without so much as saying another word to another employer. This is an even better in cultures where discussing income and compensation is relatively taboo since workers themselves inhibit their own ability to effectively negotiate. Living abroad I was somewhat stupefied that "How much do you make?" and "How much is your rent"? and other such questions are perfectly normal. Consider this thought experiment. Imagine employers were not allowed any access to historic or current wage data. They simply had to choose prices they felt appropriate for the work at hand. I think it's safe to say that wages would be much higher than they are now since naturally you would price wages relative to the value of the person being hired. Modern information not only allows but inadvertently encourages employers to engage in mass price fixing. And in a world where employment is, more than ever, something that's very temporary (a quick search shows the average time of employment is about 4 years) - the price set for new hires is arguably the single biggest factor in long term wage levels.