Factors Explaining the Gap Between Hourly Earning Growth and Productivity Growth 1973 to 2012
Created on July 17, 2013
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
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.