--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-23/why-arent-workers-benefiting-from-labour-productivity-growth-in-the-united-states/" title: "Why Aren’t Workers Benefiting from Labour Productivity Growth in the United States?" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:33:46+00:00" date_modified: "2026-07-13T07:33:46+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2012" ipm_keyword: - "benefits ratio" - "decomposition" - "EPI" - "labour share" - "median wage" - "productivity" - "terms of trade" - "United States" - "wage inequality" - "wages" ipm_research_theme: - "Labour" ipm_country_focus: - "United States" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Why Aren’t Workers Benefiting from Labour Productivity Growth in the United States? Canonical URL: https://csls.ca/ipm-archive/ipm-issue-23/why-arent-workers-benefiting-from-labour-productivity-growth-in-the-united-states/ # Why Aren’t Workers Benefiting from Labour Productivity Growth in the United States? [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-23-3-Mishel-Gee.pdf) Cite this article × Cite this article as: Mishel, Lawrence, and Kar-Fai Gee. 2012. “Why Aren’t Workers Benefiting from Labour Productivity Growth in the United States?” International Productivity Monitor, No. 23 (Spring 2012): 31–43. https://www.csls.ca/ipm-archive/ipm-issue-23/why-arent-workers-benefiting-from-labour-productivity-growth-in-the-united-states/ ## Authors: - Lawrence Mishel Economic Policy Institute - Kar-Fai Gee Centre for the Study of Living Standards (CSLS) ## IPM Issue 23 Spring 2012 pp. 31–43 ## Related IPM articles [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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The Canadian Experience Tim Sargent Fall 2024 | IPM Issue 47 | pp. 39–53](https://csls.ca/ipm-archive/ipm-issue-47/how-does-industrial-policy-impact-output-hours-and-productivity-the-canadian-experience/) [Climate Change and Productivity — An Exploration Dirk Pilat Fall 2024 | IPM Issue 47 | pp. 54–86](https://csls.ca/ipm-archive/ipm-issue-47/climate-change-and-productivity-an-exploration/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn Changes in real wages, or wages adjusted for the cost of living, are the most direct route through which labour productivity affects living standards. Yet labour productivity in the United States increased by 80 per cent between 1973 and 2011, while median real hourly wages remained virtually stagnant. This article presents a framework in which this reality is decomposed into four components: deterioration of labour’s terms of trade, rising benefits as a share of wages, decline of the share of labour compensation in GDP, and rising wage inequality. Since 2000, the historically large gap between real median wages and productivity in the United States was driven by rising wage inequality and the decline of labour compensation as a share of GDP. RÉSUMÉ Les changements des salaires réels, ou des salaires corrigés du coût de la vie, sont la voie la plus directe de l’incidence de la productivité du travail sur les niveaux de vie. Pourtant, la productivité du travail a augmenté de 80 % aux États-Unis entre 1973 et 2011, pendant que le salaire horaire réel médian restait toutes fins utiles stagnant. Cet article présente un cadre dans lequel cette évolution est décomposée en quatre parties : la détérioration des termes d’échange des travailleurs, l’augmentation des bénéfices en pourcentage des salaires, la diminution de la part de la rémunération du travail dans le PIB et l’augmentation de l’inégalité salariale. Depuis 2000, l’écart entre les salaires réels médians et la productivité aux États-Unis vient de l’inégalité croissante des salaires et la diminution de la rémunération du travail en pourcentage du PIB. Les variations des salaires réels, ou des salaires ajustés du coût de la vie, sont la voie la plus directe par laquelle la productivité du travail influence le niveau de vie. Pourtant, la productivité du travail aux États-Unis a augmenté de 80 % entre 1973 et 2011, tandis que les salaires horaires réels médians sont restés pratiquement stagnants. Cet article présente un cadre dans lequel cette réalité est décomposée en quatre composantes : la détérioration des termes de l’échange du travail, la hausse des avantages sociaux en proportion des salaires, le recul de la part de la rémunération du travail dans le PIB et la hausse de l’inégalité salariale. Depuis 2000, l’écart historiquement large entre les salaires réels médians et la productivité aux États-Unis a été alimenté par la hausse de l’inégalité salariale et le recul de la rémunération du travail en proportion du PIB. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-23-3-Mishel-Gee.pdf)