----- Original Message ----- 
From: "Erik Reuter" <[EMAIL PROTECTED]>
To: "Killer Bs Discussion" <[EMAIL PROTECTED]>
Sent: Monday, September 27, 2004 5:07 PM
Subject: Re: Productivity Re: Br!n: some thoughts and quotes.


> On Sun, Sep 26, 2004 at 11:16:49PM -0500, Dan Minette wrote:
>
> > I may have just found the source of our differences.  I have been
> > focusing on the median income: the money made by the person in the
> > middle.  I think your compensation costs are the mean compensation
> > costs. The change in those numbers have been quite different.
>
> The numbers I am working with are averages. But there a significant
> difference between compensation and average hourly earnings even when
> both are measured as averages.
>
> According to the BLS:
>
>   "Compensation is a measure of the cost to the employer of securing the
>   services of labor. It includes wages and salaries, supplements (like
>   shift differentials, all kinds of paid leave, bonus and incentive
>   payments, and employee discounts), and employer contributions to
>   employee-benefit plans (like medical and life insurance, workmen's
>   compensation, and unemployment insurance).
>
>   The measures of compensation published alongside the productivity
>   measures include an imputation of the earnings of the self-employed.
>   This is because the output of proprietorships is included in our output
>   measures."

I went to

ftp://ftp.bls.gov/pub/suppl/eci.ecconst.txt

to get tables, since it is easier for me to compare numerically.  From '81
to '84 we have the following geometrically averaged yearly growth.


wages        compensation
0.55%         0.86%

This also includes, BTW, the increase in the social security and Medicare
taxes paid by the employer.

The total over 23 years is:

wages      compensation
13.4%       21.7%

Compensation increases are a bit more than 50% higher than wage increases.

The difference between the mean and the median wage increase is much more
than this: a factor of 8.  It would be interesting to see the same figures
for the median compensation and wages.

Dan M.


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