OECD 2018 Economic Outlook has Mixed Findings on the Drivers of Wage – Productivity Decoupling

The recent OECD Economic Outlook contains a special chapter stressing the fact that gains in productivity have not been broadly shared with workers in the majority of OECD countries over the last two decades. The OECD also discusses the implications for public policy. While it is interesting to note that the OECD is now openly recognising that improving productivity performance does not automatically trickle down to wages, the report offers less convincing conclusions, in particular with regard to the impact of higher minimum wages. Read more in the attached TUAC analysis.