Why is nominal wage growth so low?

Analysis - July 2018 - No. 10

Authors Kristoffersen, Mark Strøm
Subject Danish Economy; Inflation, wages and prices; Other economic analyses
Type Analysis
Year 2018
Published 5 July 2018
Nominal wage growth has been low since 2010, albeit with decent real wage growth in recent years. This also applies to Denmark’s most important export markets, e.g. Germany. A lower average replacement ratio for unemployment benefits and weak inflation have been contributing to low nominal wage growth in Denmark since 2013.