3 ms·
> https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/ The history of that EPI report is useful to know. Early versions of it sh
by boole1854 4y ago
> https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/
The history of that EPI report is useful to know. Early versions of it showed a large gap between rising productivity and stagnating employee compensation.
Some critics then pointed out problems with the analysis [1]. The report performed an apples-to-oranges comparison of productivity of (A) all non-farm workers adjusted over time with a (B) GDP deflator-based inflation index compared with the compensation of (A) a limited subset of employees adjusted over time with a (B) CPI-based inflation index. A more useful comparison would use the same inflation index for both data sets and would exclude from the productivity measure the workers that are also excluded from the compensation measure. When this is done, the growth in productivity and pay rise and nearly in lockstep, thus effectively refuting the majority of the point that the original report was trying to make.
Since then, the EPI report has been updated to be more nuanced, which can be especially seen when one expands the 'click here for more...' sections. The new conclusion from the report is that productivity and compensation increases have been increasing primarily for a subset of workers while a broad subset of workers have not seen large productivity and compensation growth. This is true (as far as I can tell), but it's also a different story with different policy implications than the original story which implied diverging productivity and pay within the same set of workers.
[1] https://www.heritage.org/jobs-and-labor/report/workers-compensation-growing-along-productivity https://www.heritage.org/jobs-and-labor/report/workers-compe...