First, productivity increases are not evenly distributed through-out an organziation. So the comparison of wage growth at different wage levels isn't always meaningful. Separately, wages can only grow to the extent that productivity exceeds labor costs, (healthcare or FICA for example). Finally I think that labor compensation does not include all compensation. The last time I looked at BLS data it did not include stock options for example.
FYI I tried posting this at the AEI blog and it would accept it.
I am a Resident Scholar at the American Enterprise Institute in Washington, where my work focuses on Social Security policy. Previously I held several positions within the Social Security Administration, including Deputy Commissioner for Policy and principal Deputy Commissioner. Prior to that I was a Social Security Analyst at the Cato Institute. In 2005 I worked on Social Security reform at the White House National Economic Council, and in 2001 I was on the staff of the President's Commission to Strengthen Social Security. My Bachelor's degree is from the Queen's University of Belfast, Northern Ireland. I have Master's degrees from Cambridge University and the University of London and a Ph.D. from the London School of Economics and Political Science. I can be contacted at andrew.biggs @ aei.org.
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First, productivity increases are not evenly distributed through-out an organziation. So the comparison of wage growth at different wage levels isn't always meaningful. Separately, wages can only grow to the extent that productivity exceeds labor costs, (healthcare or FICA for example). Finally I think that labor compensation does not include all compensation. The last time I looked at BLS data it did not include stock options for example.
FYI I tried posting this at the AEI blog and it would accept it.
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