At the OECD Insights blog, James Plunkett announces findings from the Professor John van Reenen and Joao Paulo Pessoa of the London School of Economics study funded by the Resolution Foundation, Decoupling of Wage Growth and Productivity Growth? Myth and Reality. The research gives keen insight to the problems of median wage stagnation, concluding that there has been a great amount of decoupling between labor productivity and median hourly wages in the UK. Median hourly wages were essentially flat for the past two decades but for a four year growth.
The study defines an important distinction between net and gross decoupling; one which supports the narrative and one which does not. While the first, net decoupling, defined by van Reenan and Pessao as the difference between GDP growth per hour (labor productivity) and average compensation, with GDP deflator taken into account for both, was found not to have diverged, gross decoupling has…
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Utopia, you are standing in it! 
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