Because productivity grows unevenly, workers reallocate between sectors, and low-skill wages stagnate, write Rachel Ngai and Orhun Sevinc The real wage of non-college workers in the U.S. has grown by about 20 per cent since the 1980s, which is less than half of the growth in aggregate labour productivity. This is rather puzzling because low-skill workers tend to work in sectors that have higher productivity growth, yet their wages are lagging behind those of high-skill workers and aggregate labour productivity. The slow growth of low-skill wages is also important for the average wage growth as non-college workers represent two-thirds […]
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