What labor market changes have generated inequality and wage suppression?: Employer power is significant but largely constant, whereas workers’ power has been eroded by policy actions

Labor markets in capitalist economies are fundamentally tilted against individual workers’ ability to bargain effectively with employers. In the past, when economic growth was broadly shared across the population, it was because policymakers understood this basic asymmetry and used policy levers to bolster the leverage and bargaining power of workers. Conversely, recent decades’ rise of inequality and anemic wage growth has resulted from a stripping away of these policy bulwarks to workers’ labor market power.