Some history you should know: Baby boomers like me grew up in a nation that was far less polarized economically than the one we live in today.
For example, chief executives of major corporations were paid “only” 15 times as much as their average workers, compared with more than 200 times as much as their average workers now.
But income gaps remained narrow for decades after these controls were lifted; overall income inequality didn’t really take off again until around 1980.
Unions are a force for greater wage equality; they also help enforce the “outrage constraint” that used to limit executive compensation.
Conversely, the decline of unions, which now represent less than 7 percent of private-sector workers, must have played a role in the coming of the Second Gilded Age we live in now.
Persons:
Claudia Goldin, Robert Margo
Organizations:
Unions
Locations:
America