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 |
|---|---|---|---|---|---|---|---|
| 1979 | $20.48 | $20.48 | $20.48 | $20.48 | $20.48 | $20.48 | $20.48 |
| 2017 | $33.10 | $30.72 | $28.59 | $27.30 | $25.46 | $23.15 | $20.48 |
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.