Question: An article in the Economist notes, For 60 years, from 1770 to 1830, growth in British wages, adjusted for inflation, was imperceptible because productivity growth
An article in the Economist notes, "For 60 years, from 1770 to 1830, growth in British wages, adjusted for inflation, was imperceptible because productivity growth was restricted to a few industries." Not until the late nineteenth, when productivity "gains had spread across the whole economy," did a sustained increase in real wages begin. Why would you expect there to be a close relationship between productivity gains and increases in real wages?
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