Explain the concept of wage stagnation.

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Explain the concept of wage stagnation.

Wage stagnation refers to a situation where the average wages or incomes of workers remain relatively unchanged or grow at a very slow pace over a certain period of time. It occurs when there is a lack of significant increase in wages despite economic growth or improvements in productivity. Factors contributing to wage stagnation can include technological advancements, globalization, changes in labor market dynamics, and a decline in the bargaining power of workers. Wage stagnation can have negative effects on individuals and the overall economy, as it can lead to reduced consumer spending, increased income inequality, and decreased economic mobility.