--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-32/decomposing-the-productivity-wage-nexus-in-selected-oecd-countries-1986-2013/" title: "Decomposing the Productivity-Wage Nexus in Selected OECD Countries, 1986-2013" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T07:42:30+00:00" date_modified: "2026-07-13T07:42:30+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Spring 2017" ipm_keyword: - "11 countries" - "1986-2013" - "decomposition" - "labour share" - "OECD" - "productivity" - "social insurance" - "terms of trade" - "wage inequality" - "wages" ipm_research_theme: - "Labour" ipm_country_focus: - "Canada" - "International" - "OECD" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Decomposing the Productivity-Wage Nexus in Selected OECD Countries, 1986-2013 Canonical URL: https://csls.ca/ipm-archive/ipm-issue-32/decomposing-the-productivity-wage-nexus-in-selected-oecd-countries-1986-2013/ # Decomposing the Productivity-Wage Nexus in Selected OECD Countries, 1986-2013 [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-32-2-Sharpe-Uguccioni.pdf) Cite this article × Cite this article as: Sharpe, Andrew, and James Uguccioni. 2017. “Decomposing the Productivity-Wage Nexus in Selected OECD Countries, 1986-2013.” International Productivity Monitor, No. 32 (Spring 2017): 25–43. https://www.csls.ca/ipm-archive/ipm-issue-32/decomposing-the-productivity-wage-nexus-in-selected-oecd-countries-1986-2013/ ## Authors: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - James Uguccioni Centre for the Study of Living Standards (CSLS) ## IPM Issue 32 Spring 2017 pp. 25–43 ## Related IPM articles [Is the SNA Still Useful? 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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 Standard economic theory predicts that in the long run, productivity growth ought to drive aggregate real wage growth. We consider this prediction in the case of 11 OECD countries, and find that eight of the 11 experienced slower median real wage growth than labour productivity growth over the 1986-2013 period. We decompose the gap between labour productivity growth and median real wage growth into four components: wage inequality, changes in the importance of employer contributions to social insurance programs, differences between the prices of output and consumption, and changes to labour’s share of income. The decompositions ultimately show that there is no common cause for the productivity-wage gap, though most countries did see wage inequality grow and labour’s share of income fall to some degree over our period of study. In the face of growing inequality in advanced La théorie économique standard prédit qu’à long terme, la croissance de la productivité devrait stimuler la croissance des salaires réels globaux. Nous examinons cette prédiction dans le cas de 11 pays de l’OCDE, et constatons que huit des 11 ont connu une croissance des salaires réels médians plus lente que la croissance de la productivité du travail sur la période 1986-2013. Nous décomposons l’écart entre la croissance de la productivité du travail et la croissance des salaires réels médians en quatre composantes : l’inégalité salariale, les variations de l’importance des cotisations patronales aux programmes d’assurance sociale, les différences entre les prix de la production et de la consommation, et les variations de la part du revenu du travail. Les décompositions montrent qu’il n’y a pas de cause commune à l’écart productivité-salaire, bien que la plupart des pays aient connu une hausse de l’inégalité salariale et une baisse de la part du revenu du travail. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-32-2-Sharpe-Uguccioni.pdf)