Thomas Kochan

Thomas A. Kochan is the George M. Bunker Professor of Management at the MIT Sloan School of Management and Co-director of the MIT Workplace Center. He is author of Restoring the American Dream: A Working Families' Agenda for America.

Recent Articles

Wages and the Social Contract

From the end of world war ii through the mid 1970s, the real wages of American workers nearly doubled, moving up in tandem with the growth in productivity. The United States benefited from an implicit social contract: By working hard and contributing to productivity, profits, and economic growth, workers and their families could expect improved living standards, greater job security, and a secure and dignified retirement. This social contract broke down after 1980, as employees lost their bargaining power. Since then, productivity has grown more than 70 percent while real compensation of nonmanagerial workers has remained flat. Wages for the lowest-paid workers have collapsed even more than for average workers.