Wage Suppression
Factors percent contribution to productivity--median compensation divergence, 1979–2017
| Year | Unexplained** | Noncompetes, misclassification, overtime, supply chain dominance* | Corporate globalization | Eroded collective bargaining | Excessive unemployment | Baseline |
|---|---|---|---|---|---|---|
| 1979 | 0% | 0% | 0% | 0% | 0% | 0% |
| 2017 | 43.0% | 32.7% | 23.5% | 17.9% | 10.0% | 0% |
Notes: Automation/skill deficits had no effect.
* Dominant buyer and fissuring
** Including but not limited to: wage theft, guestworker programs, racial discrimination, industry deregulation, forced arbitration, and anti-poaching agreements
Source: Authors’ analysis from Table 3.
This chart appears in:
Previous chart: « Factors driving the productivity–median compensation divergence, 1979–2017