Table 1
Contributions to gap between median hourly compensation and productivity growth, 1973–2014
| 1973–1979 | 1979–1995 | 1995–2000 | 2000–2007 | 2007–2014 | 2000–2014 | 1973–2014 | |
|---|---|---|---|---|---|---|---|
| A. Basic trends (annual growth) | |||||||
| 1. Median hourly wage | -0.25% | -0.15% | 1.48% | 0.36% | -0.30% | 0.03% | 0.09% |
| 2. Median hourly compensation | 0.31% | -0.07% | 1.18% | 0.55% | -0.30% | 0.13% | 0.20% |
| 3. Average hourly compensation-consumer | 0.79% | 0.62% | 2.23% | 1.22% | 0.19% | 0.70% | 0.87% |
| 4. Average hourly compensation-producer | 1.08% | 1.03% | 2.74% | 1.39% | 0.43% | 0.91% | 1.20% |
| 5. Gross productivity | 1.10% | 1.37% | 2.33% | 2.14% | 1.05% | 1.59% | 1.52% |
| 6. Net productivity | 0.94% | 1.17% | 2.11% | 1.90% | 0.91% | 1.41% | 1.33% |
| 7. Gross productivity–median compensation gap | 0.79% | 1.45% | 1.14% | 1.58% | 1.36% | 1.47% | 1.32% |
| 8. Net productivity–median compensation gap | 0.63% | 1.25% | 0.92% | 1.34% | 1.22% | 1.28% | 1.13% |
| B. Explanatory factors for net productivity gap (annual growth) | |||||||
| Inequality of compensation | 0.48% | 0.69% | 1.04% | 0.66% | 0.49% | 0.58% | 0.66% |
| Loss in labor’s share of income | -0.13% | 0.14% | -0.61% | 0.51% | 0.48% | 0.50% | 0.13% |
| Divergence of consumer and output prices | 0.28% | 0.41% | 0.50% | 0.17% | 0.24% | 0.20% | 0.33% |
| Total | 0.63% | 1.24% | 0.93% | 1.34% | 1.21% | 1.28% | 1.12% |
| Relative contribution to net productivity gap (percent of gap) | |||||||
| Inequality of compensation | 76.9% | 55.4% | 111.6% | 49.4% | 40.6% | 45.2% | 58.9% |
| Loss in labor’s share of income | -21.2% | 11.4% | -66.0% | 37.8% | 39.9% | 38.8% | 11.5% |
| Divergence of consumer and output prices | 44.4% | 33.2% | 54.4% | 12.8% | 19.5% | 16.0% | 29.6% |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| C. Explanatory factors for gross productivity gap (annual growth) | |||||||
| Inequality of compensation | 0.48% | 0.69% | 1.04% | 0.66% | 0.49% | 0.58% | 0.66% |
| Loss in labor’s share of income | 0.18% | 0.18% | -0.60% | 0.66% | 0.52% | 0.59% | 0.23% |
| Divergence of consumer and output prices | 0.12% | 0.57% | 0.71% | 0.25% | 0.34% | 0.29% | 0.43% |
| Total | 0.78% | 1.44% | 1.15% | 1.57% | 1.35% | 1.46% | 1.31% |
| Relative contribution to gross productivity gap (percent of gap) | |||||||
| Inequality of compensation | 61.7% | 47.8% | 90.4% | 42.2% | 36.5% | 39.5% | 50.4% |
| Loss in labor’s share of income | 23.1% | 12.6% | -51.9% | 42.2% | 38.3% | 40.4% | 17.1% |
| Divergence of consumer and output prices | 15.1% | 39.6% | 61.5% | 15.7% | 25.3% | 20.1% | 32.4% |
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
Source: EPI analysis of data from the BEA, BLS, and CPS ORG (see technical appendix for more detailed information)
Source: Economic Policy Institute analysis of data from the Bureau of Economic Analysis' National Income and Product Accounts, the Bureau of Labor Statistics' Consumer Price Indexes and Labor Productivity and Costs program, and Current Population Survey Outgoing Rotation Group microdata (see technical appendix for more detailed information)
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