Productivity is rising, but income isn’t keeping up. Wages - TopicsExpress

Productivity is rising, but income isn’t keeping up. Wages should, in theory remain in line with productivity. Over the past few decades, large increases in productivity have led to rapid economic growth worldwide. However, the share of income that flows back to workers has diminished. This pressure on wages is forecast to continue with technological change and globalisation allowing companies to look for cheaper labour elsewhere. When wages stagnate, economic growth may be affected by a fall in household purchasing parity and consumption. In addition, lower wage expectations may ultimately lead to lower investment in human capital—in other words, a reduced emphasis on education by individuals. Find out more in Evolution of Work and the Worker, an EIU report sponsored by the SHRM Foundation >> bit.ly/Fthrt28

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