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Which of the following factors is the primary driver of workers' standards of living?

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As explained by a wide array of economists with diverse political views, such as Janet Yellen while she was chair of the Federal Reserve, "The most important factor determining living standards is productivity growth, defined as increases in how much can be produced in an hour of work. Over time, sustained increases in productivity are necessary to support rising incomes." Contrary to the claims of many politicians and journalists, U.S. average labor productivity and hourly worker compensation have generally risen at about the same pace for the past 70 years. Also, the overall productivity of each nation drives the compensation of low-income workers, and this is partly why a 2012 study found that McDonald's workers in the U.S. have six times more real purchasing power than in Latin America.

DocumentationProductivityProductivity & CompensationMcWages




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