Pay growth has lagged productivity growth largely thanks to policy failures: Contribution (in 2017 dollars) of various factors to productivity–median compensation divergence, 1979–2017
|Year||Unexplained**||Noncompetes, misclassification, overtime, supply chain dominance*||Corporate globalization||Eroded collective bargaining||Excessive unemployment||Actual growth||Baseline|
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: Adapted from Figure J in Lawrence Mishel and Josh Bivens, Identifying the Policy Levers Generating Wage Suppression and Wage Inequality, May 2021.