Workers Don't Share In Companies' Productivity Gains

productivity gains workers
productivity gains workers

NEW YORK -- Companies are on a tear in terms of productivity and profits, but they aren't sharing much of the gains with their workers. The gap between hourly compensation and productivity is the highest it's been since just after World War II. This divergence is one of the major drivers of the nation's growing income inequality.

"A bigger share of what businesses in the U.S. are producing is going to the owners of the firms and the people who lent money to the firm, and a smaller share is going to workers," said Gary Burtless, senior fellow in economic studies at The Brookings Institution.