4 ms·

Adjusted for inflation, income growth is 0. Capital is capturing all the productivity gains. https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-worke

• dcolkitt 6y ago
  The link you're citing is citing median wages. Productivity is measured in terms of mean output. You're comparing apples to oranges. Mean wages have closely tracked productivity metrics. Median wages have fallen relative to mean wages. That strongly implies that the issue isn't decoupling between wages and productivity, but faster growth in the output of high-skilled workers relative to low-skilled workers. This is confirmed by the empirical research[1], which shows that 61% of the divergence between median wages and productivity has come from income inequality between workers. Only 25% has come from rising corporate profits. [1]https://www.epi.org/publication/ib330-productivity-vs-compensation/ https://www.epi.org/publication/ib330-productivity-vs-compen...