This is the third and final blog post in my series on income inequality (read the other two here and here). This post discusses the detachment of compensation from productivity that occurred around 1973. I look at the data and use R for exploring this break, along with why it may have occurred. R code is with the analysis, in the spirit of reproducible research.
I am beginning a new series on economics focusing on income and wealth inequality, which may last for a couple weeks. This first post (originally written in 2014 as preliminary work for a thesis research project that ended up simply not happening) does not deal directly with income inequality; instead, I discuss the political economy of banking, reviewing a book and a journal article on the topic. Next week’s post will make clear the relationship of the content in this post with income inequality.