Abstract:During the last decades, mature economies have tended to experience a divergence between labour compensation and productivity growth. Interpretations of this trend are still under debate. Our article aims at contributing to a sound, evidence-based understanding. We estimate the magnitude of this decoupling for a panel of 22 high-income economies and empirically assess the role of a variety of factors. After providing evidence that casts doubt on the impact of technical change, we adopt a 'political economy' s… Show more
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