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Tuesday, April 19, 2016

Contrary to White House Claim, Compensation Has Been in Line with Productivity | Mercatus

Contrary to White House Claim, Compensation Has Been in Line with Productivity | Mercatus



"The White House has been among those who believe in the productivity-pay gap claim that workers’ productivity rose at a high rate over the last four decades but growth in real earnings failed to keep pace and instead changed at a nearly flat rate (see the green line in the chart below). These arguments continue to fuel the debate on contested labor policies such as the overtime pay rule and minimum wage increases. A more careful and comprehensive analysis of real worker pay and productivity data, however, shows that worker compensation is closely tied to worker productivity. "

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