Workers' Compensation Growing with Their Productivity
Publication Date: June 2008
Publisher(s): Heritage Foundation (Washington, D.C.)
Author(s): James Sherk
Keywords: mobility; Labor; income; compensation
Coverage: United States
Americans frequently hear that workers work harder than ever, but do not reap the fruits of their labor. A simple comparison of productivity and wage growth seems to confirm this trend. However, productivity and wage growth are not directly comparable. Looking at everything workers earn--not just cash wages--and adjusting both series with the same measure of inflation shows that productivity and compensation have risen in tandem. In fact, workers' pay is more directly tied to their performance than a generation ago. Congress should not legislate to correct an imbalance between wage and productivity growth because this difference does not exist.