Wednesday, September 22, 2021

Re-examining Wage share in the US (1959-2024)

 Re-examining Wage share in the US (1959-2024)

Figure show the compensation of employees as a share of personal income.






Updating the post by Matias Vernengo - January 03, 2013 , one can see the "negative trend starts in the late 1970s early 1980s, with the Volcker hike in interest rates and the Reagan revolution, meaning reductions in marginal taxes for the wealthy". Since that period here has been a steady downward trend. The COVID-19 recession provided a dramatic drop and a subsequent rebound but not at pre-recession levels.

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