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.

Microeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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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.
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.
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