--- canonical_url: "https://csls.ca/research/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: "2026-07-02T12:48:51+00:00" date_modified: "2026-07-02T12:48:51+00:00" post_type: "research" summary: "" post_tag: - "decomposition" - "earnings" - "income inequality" - "labour productivity" - "labour share" - "median wages" - "OECD" - "productivity-wage gap" country_focus: - "Canada" - "OECD" province_region: - "National" research_theme: - "Labour Markets" - "Productivity and Economic Measurement" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # Decomposing the Productivity-Wage Nexus in Selected OECD Countries, 1986-2013 Canonical URL: https://csls.ca/research/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 report](https://csls.ca/pdf/csls2016-16-1.pdf) Cite this report × Cite this report as: Uguccioni, James, and Andrew Sharpe. 2016. “Decomposing the Productivity-Wage Nexus in Selected OECD Countries, 1986-2013.” CSLS Research Report 2016-16. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/decomposing-the-productivity-wage-nexus-in-selected-oecd-countries-1986-2013/ ## Authors: - James Uguccioni Centre for the Study of Living Standards (CSLS) - Andrew Sharpe Centre for the Study of Living Standards (CSLS) ## Report 2016-16 November 2016 34 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Productivity Trends in the Construction Sector: A Case of Lagging Technical Progress Centre for the Study of Living Standards (CSLS) November 2001 | Report 2001-03 | 177 pages](https://csls.ca/research/productivity-trends-in-the-construction-sector-a-case-of-lagging-technical-progress/) [Raising Canadian Living Standards: A Framework for Discussion Centre for the Study of Living Standards (CSLS) October 2002 | Report 2002-td | 56 pages](https://csls.ca/research/raising-canadian-living-standards-a-framework-for-discussion/) [Productivity Trends in Natural Resources Industries in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01a | 69 pages](https://csls.ca/research/productivity-trends-in-natural-resources-industries-in-canada/) [An Analysis of Productivity Trends in the Forest Products Sector in Canada Centre for the Study of Living Standards (CSLS) February 2003 | Report 2003-01b | 64 pages](https://csls.ca/research/an-analysis-of-productivity-trends-in-the-forest-products-sector-in-canada/) [Why Are Americans More Productive Than Canadians? Andrew Sharpe June 2003 | Report 2003-03 | 83 pages](https://csls.ca/research/why-are-americans-more-productive-than-canadians/) ## 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 the majority have experienced much 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: inequality, data source differences, 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 inequality grow and labour’s share of income fall to some degree over our period of study. La théorie économique standard prévoit qu’à long terme, la croissance de la productivité devrait entraîner la croissance du salaire réel global. Nous examinons cette prévision pour 11 pays de l’OCDE et constatons que la majorité d’entre eux ont connu une croissance du salaire réel médian nettement plus lente que celle de la productivité du travail au cours de la période 1986-2013. Nous décomposons l’écart entre la croissance de la productivité du travail et celle du salaire réel médian en quatre composantes : l’inégalité, les différences de sources de données, les écarts entre les prix de la production et de la consommation, et les variations de la part du travail dans le revenu. Les décompositions montrent en définitive qu’il n’existe pas de cause commune à l’écart productivité-salaire, bien que la plupart des pays aient connu une hausse de l’inégalité et un recul, à divers degrés, de la part du travail dans le revenu au cours de la période étudiée. [Download full PDF report](https://csls.ca/pdf/csls2016-16-1.pdf)