Uneven technology adoption behind low productivity and wage growth – RBA research

High-productivity firms are reducing prices and increasing profits rather than boosting salaries

Yellow robots welding cars in a production line

The uneven technology adoption among individual companies is creating ever more unequal productivity performances, which contributes to lower wage growth and labour’s shrinking share of income.

A research paper published by the Reserve Bank of Australia suggests an important part of the explanation may be found at the companies level, rather than at a macroeconomic level.

Uneven technology demand across firms within the same industry seems to harm wage growth. “High productivity firms would

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