Advances in technology over the last half-century have increased worker productivity by leaps and bounds, but wages have remained stagnant, reported AllGov.com.
According to the Economic Policy Institute (EPI), worker productivity increased by 72.2 percent from 1973 to 2014. Yet employee wages increased by only 8.7 percent, mostly between 1995 and 2002; hardly a reflection of the amount of work Americans do.
If employee wages had “kept pace with productivity growth since the 1970s, then there would have been no rise in income inequality during that period,” said Josh Bivens and Lawrence Mishel of the EPI.
On the flip side, compensation for the top one percent has risen drastically over the last few decades, increasing the problem of income inequality.