Wage Stabilization

Wage Stabilization

During a period of high inflation, the system of policies a government uses to prevent wages from increasing. A government may adopt a wage freeze, in which it simply forbids wage and salary increases. Because this does not attack underlying inflation, the most effective method of wage stabilization is to reduce currency in circulation, specifically by raising key interest rates.
References in periodicals archive ?
Two related to the Salary and Wage Stabilization Act administered by the Treasury Department and the National War Labor Board, and one, "Auditing Afloat," recounted the ship auditing duties of a naval supply officer, Lt.
Then in 1943 I received an invitation to join the Wage Stabilization division of the War Labor Board (WLB).
Further, President Truman established the tripartite National Wage Stabilization Board during the Korean War and I served as a public member until the termination of the Board with the Eisenhower administration.
Then, as noted, during the Korean War period President Truman appointed me as a public member of the Wage Stabilization Board.
Inspectors of the Wage and Hour Division were assigned to explain, investigate, and enforce the wage stabilization program.
Louis Stark of The New York Times introduced me to the labor beat during the eras of the War Labor Board (World War II) and the National Wage Stabilization Board (Korean War), both involving stabilization of wages and salaries and resolution of labor-management disputes.
With the onset of World War II, the vast data needs generated by price controls and the wage stabilization effort led to the establishment of BLS regional offices to advise and assist regional War Labor Boards.
The information was also used to measure the effectiveness of wage stabilization decisions and to settle industrial disputes.
The wartime work on wage stabilization had established the value of area-oriented data, so, in 1948, a series of surveys measuring pay levels and related practices for office clerical occupations on a cross-industry basis was initiated in 11 large cities.
With the beginning of comprehensive wage stabilization under the War Labor Board, the governmental need for wage statistics increased manyfold.
This was an extraordinary achievement over a period of little more than 2 years, and represented a vital contribution to the wartime wage stabilization program.
The second Bureau contribution to the wage stabilization effort was the construction of an occupationally based index of urban wage rates.