Decomposing productivity-median hourly compensation gap : Growth of productivity, real average compensation (consumer and producer), and real median compensation, 1973--2019

Year Net productivity @IPD of net GDP Net productivity @consumer prices Real Average compensation @consumer prices Real median hourly compensation @consumer prices
1979 0 0 0 0
1980 -0.60% -2.70% -0.50% -0.30%
1981 1.10% -0.90% -0.20% -0.90%
1982 0.10% -1.80% 1.70% -0.90%
1983 3.10% 1.20% 2.00% -0.30%
1984 5.80% 3.70% 2.50% 0.00%
1985 7.50% 5.30% 4.60% 1.70%
1986 9.70% 7.80% 8.00% 2.60%
1987 9.90% 7.20% 8.50% 3.30%
1988 11.50% 8.70% 10.30% 1.90%
1989 12.50% 9.40% 9.30% 2.10%
1990 13.90% 9.80% 9.80% 2.10%
1991 14.60% 10.50% 11.60% 1.60%
1992 18.90% 14.80% 14.90% 3.30%
1993 19.40% 15.30% 14.50% 5.10%
1994 20.40% 16.40% 14.40% 3.60%
1995 20.90% 16.50% 13.90% 1.20%
1996 23.10% 17.90% 15.10% -1.00%
1997 25.30% 19.80% 16.50% 0.40%
1998 27.90% 22.20% 20.50% 3.70%
1999 31.40% 24.90% 23.20% 6.20%
2000 34.30% 26.40% 26.80% 6.90%
2001 36.30% 27.90% 28.90% 9.00%
2002 40.10% 31.70% 30.00% 11.50%
2003 44.70% 36.00% 32.30% 12.20%
2004 48.60% 39.70% 34.50% 13.70%
2005 51.50% 41.80% 34.90% 12.20%
2006 52.60% 42.60% 35.70% 12.00%
2007 53.70% 43.60% 37.80% 11.80%
2008 54.50% 41.80% 37.30% 11.10%
2009 58.00% 47.00% 39.80% 14.10%
2010 62.70% 51.10% 40.10% 13.60%
2011 62.60% 49.60% 38.60% 10.60%
2012 63.30% 50.00% 38.70% 8.80%
2013 64.00% 51.20% 38.80% 9.80%
2014 64.80% 52.10% 40.10% 9.50%
2015 66.40% 54.90% 43.80% 10.90%
2016 66.80% 55.10% 43.80% 12.60%
2017 68.30% 56.20% 45.30% 13.50%
2018 70.00% 58.00% 46.40% 15.50%
2019 72.00% 59.70% 48.40% 16.30%

Notes: Data are for all workers. Net productivity is the growth of output of goods and services minus depreciation, per hour worked. “Compensation” refers to total compensation, including wages and benefits.

Source: Author’s analysis of EPI Current Population Survey Extracts, Version 1.0 (2020), https://microdata.epi.org; unpublished Total Economy Productivity data from the Bureau of Labor Statistics (BLS) Labor Productivity and Costs program; and Bureau of Economic Analysis National Income and Product Accounts. For more detailed information, see the appendix of Bivens and Mishel, Understanding the Historic Divergence Between Productivity and a Typical Worker’s Pay (2015).

View the underlying data on epi.org.