Friday, December 15, 2017

Intuitive, but only after I saw it

Starting with the "productivity versus compensation" thing, I decided to look at aggregate totals rather than "per hour" numbers, and switched from "real" to "nominal" data. We're not looking at growth now, but we are looking at income and cost.

I figured compensation as a percent of current dollar output. Guess what it looks like: Labor share.

Graph #1: Compensation as a Percent of Output, nominal Business Sector index values
Exactly like labor share:

Graph #2: The Graph #1 Data (blue) and Labor Share (red)
I had no idea. I love it when that happens.

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