“For example, in 2005 … the pay of workers -- and of course we are talking average -- barely kept up with inflation, particularly at the end of the year. A big part of that, of course, was rising gas prices," says Dr. Walden, a professor in the College of Agriculture and Life Sciences.

“We are doing much better as workers in 2006. The average pay for the average worker has been increasing about three to four percentage points faster than inflation, and that edge that pay has over inflation has actually accelerated as the year has gone on," he says.

“Now, of course, one reason is lower gas prices, meaning lower inflation; also … a tighter labor market. Businesses are having to compete more for workers, and that often translates into better pay.”