High-Wage Industries Stifle Job Growth and Productivity, Reshaping Economic Landscape
The study looked at how industries with higher wages in 1959 had different growth rates in employment, GDP, and labor productivity over the next few decades. Industries with above-average wages had lower employment and GDP growth but higher capital-labor ratio and labor productivity growth. This suggests that the wage differences between industries affect how companies and the market respond, leading to changes in how resources are used and productivity levels.