Home > upward income redistribution > The wage-productivity gap in the G20 (2 graphs)

The wage-productivity gap in the G20 (2 graphs)

from David Ruccio

productivity-wages-G20

 

According to a new report jointly issued by the OECD, World Bank, and the International Labor Organization, “G20 labour markets: outlook, key challenges and policy responses” [pdf], the gap between the growth of productivity and the growth of real wages started long before the most recent crisis and, apart from a short reversal during the depth of the crisis (when productivity fell), has continued to widen since 2010.

labor share

One of the consequences of that growing gap is a “substantial and widespread” decline in the labor share of national income.

Together, the wage-productivity gap and the declining labor share are a cause of the current crisis and a consequence of the kind of recovery that has been enacted in the years since the crash of 2007-08.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.