The real wage increase in the data during war time might be overstated as:

Question

Quizplus · Accepted Answer

Price controls in war time can lead to an understatement of the true price level, which means the increase in the reported real wage might be overstated. While labour demand might be high in war time, this by itself wouldn't necessarily lead to an overstatement of real wage increases. Similarly, capital utilization falling in war time would not directly impact the calculation of real wages.

The Real Wage Increase in the Data During War Time