Factors driving the productivity--median compensation divergence, 1979--2017

Factors Impact on median wage (%) Share of divergence explained
Excessive unemployment; union erosion; globalization 23.5% 54.7%
Other (OT, misclassification, fissuring, dominant buyer, noncompetes) 9.2% 21.4%
Automation/skill deficits 0.0% 0.0%
Total explained 32.7% 76.1%
Divergence btw productivity–median hourly compensation, 1979–2017 43.0% 100.0%

* Including but not limited to: wage theft, guestworker programs, racial discrimination, industry deregulation, forced arbitration, and anti-poaching agreements.

Source: Estimates presented in Table 3.

View the underlying data on epi.org.