Productivity growth and hourly compensation growth, 1948-2020 Cumulative change since 1948 (index 1979-100) 200% 1948-1979: 1979-2020: Productivity: +118.4% Productivity: +61.8% Compensation: +107.5% Compensation: +17.5% 161.8% 150 100 50 Chart Data 0 1960 1980 2000 117.5% 2020 Notes: Data are for compensation (wages and benefits) of production/nonsupervisory workers in the private sector and net productivity of the total economy. "Net productivity" is the growth of output of goods and services less de- preciation per hour worked. The figure above indicates that: O Increases in union membership increased income inequality during the 1950s and 1960s. O Capitalists broke the law during the 1980s by paying workers less than the value the workers produced. Income inequality increased significantly during the 1948-1979 period. The wage share of income has been decreasing significantly since about 1980.
Productivity growth and hourly compensation growth, 1948-2020 Cumulative change since 1948 (index 1979-100) 200% 1948-1979: 1979-2020: Productivity: +118.4% Productivity: +61.8% Compensation: +107.5% Compensation: +17.5% 161.8% 150 100 50 Chart Data 0 1960 1980 2000 117.5% 2020 Notes: Data are for compensation (wages and benefits) of production/nonsupervisory workers in the private sector and net productivity of the total economy. "Net productivity" is the growth of output of goods and services less de- preciation per hour worked. The figure above indicates that: O Increases in union membership increased income inequality during the 1950s and 1960s. O Capitalists broke the law during the 1980s by paying workers less than the value the workers produced. Income inequality increased significantly during the 1948-1979 period. The wage share of income has been decreasing significantly since about 1980.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Productivity growth and hourly compensation growth, 1948-2020
Cumulative change since 1948 (index 1979-100)
200%
1948-1979:
1979-2020:
Productivity: +118.4%
Productivity: +61.8%
Compensation: +107.5%
Compensation: +17.5%
161.8%
150
100
50
Chart Data
0
1960
1980
2000
117.5%
2020
Notes: Data are for compensation (wages and benefits) of production/nonsupervisory workers in the private sector
and net productivity of the total economy. "Net productivity" is the growth of output of goods and services less de-
preciation per hour worked.
The figure above indicates that:
O Increases in union membership increased income inequality during the 1950s and 1960s.
O Capitalists broke the law during the 1980s by paying workers less than the value the workers
produced.
Income inequality increased significantly during the 1948-1979 period.
The wage share of income has been decreasing significantly since about 1980.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd66614a5-8f78-46f9-9bbb-75a3f5c762db%2Fefc3ac68-ec81-43f3-97f3-8322fdce64c2%2Fyptdp3b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Productivity growth and hourly compensation growth, 1948-2020
Cumulative change since 1948 (index 1979-100)
200%
1948-1979:
1979-2020:
Productivity: +118.4%
Productivity: +61.8%
Compensation: +107.5%
Compensation: +17.5%
161.8%
150
100
50
Chart Data
0
1960
1980
2000
117.5%
2020
Notes: Data are for compensation (wages and benefits) of production/nonsupervisory workers in the private sector
and net productivity of the total economy. "Net productivity" is the growth of output of goods and services less de-
preciation per hour worked.
The figure above indicates that:
O Increases in union membership increased income inequality during the 1950s and 1960s.
O Capitalists broke the law during the 1980s by paying workers less than the value the workers
produced.
Income inequality increased significantly during the 1948-1979 period.
The wage share of income has been decreasing significantly since about 1980.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education