A nice piece of analysis by Evan Soltas begins by critiquing the Economic Policy Institute’s graph purporting to show a decades-long, massive divergence between wages and productivity — the same graph that Ramesh has recently criticized.
The punchline of Mr. Soltas’s analysis:
With those caveats in mind, here’s the big takeaway: Between 1987 and 2013, changes in sector-level productivity explain almost all of the changes in sector-level compensation. And almost all of those productivity increases were paid as compensation to labor.
Click here to read the whole thing.
https://twitter.com/MichaelRStrain/status/639554961639141377