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Long-run changes in the wage structure: narrowing, widening, polarizing.

FROM THE CLOSE OF WORLD WAR II TO 1970--the year the Brookings Papers on Economic Activity commenced publication--America enjoyed widespread prosperity. Not only did the national economy grow rapidly, driven by robust productivity growth, but all parts of the income distribution expanded at fairly similar rates. America was "growing together." But in the mid-1970s economic growth slowed. By the early 1980s the wage structure had begun a period of widening that has lasted until the present day. Even though productivity growth surged again starting in the mid-1990s, the benefits of economic growth have been concentrated at the top end of the distribution. (1) America has been ...

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