Report
The decorrelation between real wages and productivity: Where, when, in the short run or in the long run?
Normally, real wages move in line with labour productivity in the long run to stabilise income distribution. But this link between real wages and productivity in the long run has disappeared in several OECD countries: United States and Japan among the seven largest countries. We also look at the short-term link between labour productivity and real wages: when companies make more productivity gains, do they quickly return them to their employees? We see that the short-term elasticity of real wages to productivity is: 0.13 in the United States; 0.68 in the United Kingdom; 0.35 in Japan; 0.15 in Germany; 0.31 in France; 0.63 in Spain; 0.35 in Italy. All things considered , we see that until now, employees have not benefited from productivity gains either in the short or long term, especially in the United States.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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