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The Failed Promise:

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  • Frank Levy

Abstract

One of the implicit promises of capitalism is that, as output per hour of work increases, its beneits are shared by business and labor. In a recent paper, MIT economists Frank Levy and Peter Temin show that the relationship no longer holds. Productivity has grown more rapidly than wages since the 1970s. The authors argue that the reason may well be institutional failures to support wages. In this interview with Levy, we explore the problem, the causes, and what we should think about regarding solutions.

Suggested Citation

  • Frank Levy, 2007. "The Failed Promise:," Challenge, Taylor & Francis Journals, vol. 50(6), pages 6-13.
    • Handle: RePEc:mes:challe:v:50:y:2007:i:6:p:6-13
    DOI: 10.2753/0577-5132500601
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