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Diane Publishing Books
What Happened to the Gains from Strong Productivity Growth?: A Reprint from the “Economic Review”
Jonathan L. Willis (au); Julie Wroblewski (au)
Over the past decade, the U.S. economy has experienced strong economic growth due in large part to a resurgence in productivity growth (PG). This article examines how the gains from increased PG have been distributed. Focuses on: Has the increase in PG led to a change in the income shares for capital & labor? And, has the strong PG over the past decade led to a change in the distribution of income across households? The article concludes that during the last decade of high PG, low-income households have seen no increase in real income, & at most only the top 10% of the household income distribution experienced real income growth equal to or greater than average labor PG. Charts & tables.
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