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The Productivity to Paycheck Gap: What the Data Show

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  • Dean Baker

Abstract

This report makes a series of adjustments to the most common measure of U.S. productivity growth (i.e., non-farm business sector) as well as to measures of wage growth, to determine the extent to which lagging wages can be blamed on weak productivity growth vs. income redistribution. Weak wage growth between 1973 and 2006 has generally been attributed to a redistribution of income from typical workers to higher paid workers. However, the report shows that, along with a redistribution of income, lagging wage growth has also been caused by slow productivity growth.

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Bibliographic Info

Paper provided by Center for Economic and Policy Research (CEPR) in its series CEPR Reports and Issue Briefs with number 2007-11.

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Date of creation: Apr 2007
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Handle: RePEc:epo:papers:2007-11

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Cited by:
  1. Dean Baker & David Rosnick, 2007. "India: Productivity and Sustainable Consumption in OECD Countries: 1980-2005," International Productivity Monitor, Centre for the Study of Living Standards, vol. 15, pages 41-54, Fall.
  2. Cowgill, Matt, 2013. "A Shrinking Slice of the Pie: The Labour Income Share in Australia," MPRA Paper 46209, University Library of Munich, Germany.
  3. Joao Paulo Pessoa & John Van Reenen, 2013. "Decoupling of Wage Growth and Productivity Growth? Myth and Reality," CEP Discussion Papers dp1246, Centre for Economic Performance, LSE.

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