Productivity growth and wages – a forensic look
Released 14 / 09 / 2023
This paper examines the evidence on whether wages have kept up with labour productivity in the past few decades.
We find that in all industries except for mining and agriculture – which account for over 95% of employment – productivity growth and wage growth are correlated.
Our research shows that mining and agriculture – which account for about 5% of total people employed across the economy – have exhibited wage decoupling and skew the national average significantly.
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