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ECO 350K Macroeconomics of Labor Market

Employment Cost Index (ECI)

What is ECI?


The Employment Cost Index (ECI) measures the change in the hourly labor cost to employers over time. The ECI uses a fixed "basket" of labor to produce a pure cost change, free from the effects of workers moving between occupations and industries and includes both the cost of wages and salaries and the cost of benefits.

Source: U.S. Bureau of Labor Statistics


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