CEPR has posted my short note showing that part of the reason that the strong productivity growth of the last six years has not translated into wage growth is due to a graowing share of depreciation in gross output and the difference between the output deflator and the consumer price index. After adjusting for these factors, "usuable" productivity in the current cycle has been 1.85 percent annually (soon to be revised down by 0.1percentage point, due to the benchmark revision showing considerably higher employment growth). This is about 0.7 percentage points below the rate of growth of usable productivity in the sixties.
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