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0 pointsskhunted1y ago0 comments

https://www.epi.org/productivity-pay-gap/

This next paper is funny. Notices the decoupling and tries to hand wave it away without explaining why there was no decoupling before the 80s. At any rate note that the graph is from FRED.

https://fredblog.stlouisfed.org/2023/03/when-comparing-wages...

0 comments

ethbr11y ago

The FRED blog discussion makes an interesting point about whether deflators are calculated from import or export prices changes (or both), and the effects it has on the analysis.

Reminder of how difficult it is to make real-terms adjustments to economic measures over multiple decades spans when a country's balance of trade with the world in different sectors is also changing!

skhuntedOP1y ago

Notice though that the FRED blog post does not explain away the discrepancy but merely mitigates it a bit. Note the decoupling still starts in the 70s. The great wealth disparity that exists today started at the same time. I don’t believe this is a coincidence.

ethbr11y ago

"A bit" is imprecise for the adjustment. I'd say more than a bit.

It also suggests that if you dice it up by sector you might get different amounts of decoupling, which makes logical sense given productivity gains aren't equally spread.

skhuntedOP1y ago

Sure. But in general there was no decoupling prior to 1970 and there is now decoupling. There has been wealth extraction from labor. That it is more prominent in some sectors than others is not too relevant in my opinion.

1 more reply

seizethecheese1y ago

The link is absurd. The productivity data is for everyone while the wage data is for a subset of data. If you look at compensation for everyone against productivity it tells a different story

0xdde1y ago

Can you post your comparison?

j / k navigate · click thread line to collapse

0 comments

ethbr11y ago

The FRED blog discussion makes an interesting point about whether deflators are calculated from import or export prices changes (or both), and the effects it has on the analysis.

Reminder of how difficult it is to make real-terms adjustments to economic measures over multiple decades spans when a country's balance of trade with the world in different sectors is also changing!

skhuntedOP1y ago

ethbr11y ago

"A bit" is imprecise for the adjustment. I'd say more than a bit.

It also suggests that if you dice it up by sector you might get different amounts of decoupling, which makes logical sense given productivity gains aren't equally spread.

skhuntedOP1y ago

1 more reply

seizethecheese1y ago

The link is absurd. The productivity data is for everyone while the wage data is for a subset of data. If you look at compensation for everyone against productivity it tells a different story

0xdde1y ago

Can you post your comparison?

j / k navigate · click thread line to collapse