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Wages for workers can increase faster than productivity if the business has a large fraction of fixed or non-labor costs. Also, hasn't the productivity->wage r
by fwip 9y ago
Wages for workers can increase faster than productivity if the business has a large fraction of fixed or non-labor costs.
Also, hasn't the productivity->wage ratio decreased in the past few decades? I've seen charts that seem to indicate that, but I suppose the timeframe could be cherry-picked or otherwise misleading.
e.g: http://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/ http://www.epi.org/publication/understanding-the-historic-di...
- marcosdumay 9y ago> hasn't the productivity->wage ratio decreased in the past few decades? We have been in a productivity crisis in the past few decades. AFAIK, nobody knows if it's because we are measuring everything wrong, because people are reluctant to adopt more productive habits, or because modern engineering completely failed on that front. But whatever is the cause, expect to see lots of noise and complex behavior on anything that touches productivity.