Here’s me and the great labor economist Larry Mishel discussing some of his recent work on the gap between the real compensation of middle-wage workers and productivity growth. Understanding this issue has become central to the inequality debate and Larry — who’s also the president of the Economic Policy Institute — understands it deeply.
One historical note. I think it’s great that lots of people and analysts are recognizing the importance of the divergent trends in these variables. But it’s worth pointing out that Larry was the first person to write about and examine this in the context of inequality, starting about 20 years ago! (I know, because I was there helping him.)