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% |
| Unexplained* | ||
| 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.