Most of you are probably familiar with the GDP vs Median income graphs showing that since around the 1970’s, GDP has been growing faster than median income. This has lead to various theories as to why this is the case. Common explanations range from technology change, higher premiums for education, globalization, to the conspiracy Brenton Woods Accord. What all of these seem to fail to explain adequately is that if you look only at Female Median Income, GDP and Female Median Income both are rising equally. See picture below.
Keep this in mind next time someone offers a grand explanation for the supposedly “stagnant” wages.
Economist Alex Tabarrok, blogging at Marginal Revolution, has more here.