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Factors Explaining the Gap Between Hourly Earning Growth and Productivity Growth 1973 to 2012

Created on July 17, 2013

Factors Explaining the Gap Between Hourly Earning Growth and Productivity Growth 1973 to 2012

CHART 8

Remaining factors, including faster depreciation and mismeasured productivity

Difference between average hourly earnings and total compensation

Effect of differences in inflation between the CPI and IPD

Total: 100%

Source: Heritage Foundation calculations using data from the U.S. Department of Labor, Bureau of Labor Statistics, “Productivity and Costs,” http://www.bls.gov/lpc/data.htm (accessed June 15, 2013); and Bureau of Labor Statistics, Current Establishment Survey/Haver Analytics. Wages are inflation-adjusted with the Consumer Price Index. Total compensation is inflation adjusted with the implicit price deflator for nonfarm businesses.

B 2825

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