Is Productivity Being Translated Into Pay Increases?

Jim Tankersley has a post in Wonkblog asking whether there has been a divergence between pay and productivity over the last three decades. The post notes a study from James Sherk at Heritage which makes several valid points. First, part of the gap between average pay and productivity is explained by a growing share of compensation going to health care benefits. Second part of the gap is the result of the fact that productivity is measured in gross output, whereas only net output is available...