From BigMac Price Index to Mcwages…

Orley Ashenfelter of Princeton University in a fab paper looks at this issue of real wages. Even more interesting is his usage of wages paid at McDonalds in different countries to arrive at a kind of McWage index:
A real wage rate is a nominal wage rate divided by the price of a good and is a transparent measure of how much of the good an hour of work buys. It provides an important indicator...