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Income inequality has grown, but it is a common misconception that incomes have been stagnant. According to the St Louis Fed the issue has been: >...Economis
by opo 9y ago
Income inequality has grown, but it is a common misconception that incomes have been stagnant.
According to the St Louis Fed the issue has been:
>...Economists long have noted that focusing on AHE
rather than total compensation yields an inaccurate picture
of labor compensation due to the omission from
AHE of employer-provided benefits.
https://files.stlouisfed.org/files/htdocs/publications/es/07/ES0707.pdf https://files.stlouisfed.org/files/htdocs/publications/es/07...
The page has 2 charts showing the differences when you compare wages to total compensation.
- FabHK 9y agoNot sure that's really a relevant factor. A 2012 source I found said that from 1973 to 2011, productivity grew by 80%, but wages only 4%, and total compensation 10.7% - that's a bit more, but it's still much closer to wage growth than to productivity growth. Annualised, that's productivity 1.55%, wage 0.1%, total comp 0.25%. http://www.epi.org/blog/real-hourly-wage-growth-last-generation/ http://www.epi.org/blog/real-hourly-wage-growth-last-generat...
- opo 9y agoThose numbers conflict with the St Louis Fed, so not sure what to make of them. It is unfortunate that their source seems to be produced from the think tank itself.