For decades, economic textbooks have highlighted the golden relationship between productivity and wages. As workers are able to produce more, employees reap the gains in the form of higher wages.
But this is no longer the case. View gallery . Wages and productivity climbed in lockstep between 1950 and 1980. However, there is a striking divergence between the 1980s and today. Even with the unemployment rate near multi-decade lows, Federal Reserve Chair Janet Yellen highlighted concerns about the lack of wage growth and underemployment during her speech at Harvard last month.
“We’re close to an unemployment rate that I think most […]