Debunking the ‘Productivity-Pay Gap’

Originally published on Economics from the Top Down. Have you heard of the ‘productivity-pay gap’? It’s the (apparently) growing gap between the productivity of US workers and their pay. Here’s what it looks like: In this post, I debunk the ‘productivity-pay gap’ by showing that it has nothing to do with productivity. The reason is […]

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Productivity Does Not Explain Wages

Originally published on Economics from the Top Down. Does productivity explain income? I asked this question in a previous post. My answer was a bombastic no. In this post, I’ll dig deeper into the reasons that productivity doesn’t explain income. I’ll focus on wages. The evidence Let’s start with the evidence trumpeted as proof that […]

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