▁of ▁less - sk illed ▁workers ▁since ▁ 1 9 6 5 ▁may ▁have ▁reduced ▁w ages ▁for ▁American - born ▁high ▁school ▁drop outs . ▁decl ine ▁of ▁un ions ▁– ▁Un ions ▁helped ▁increase ▁w ages , ▁benefits ▁and ▁working ▁conditions . ▁Union ized ▁workers ▁decl ined ▁from ▁over ▁ 3 0 % ▁to ▁around ▁ 1 2 %. ▁social ▁norm s ▁– ▁Social ▁norm s ▁const rained ▁executive ▁pay . ▁CE O ▁pay ▁rose ▁from ▁around ▁ 4 0 ▁times ▁the ▁average ▁workers ▁pay ▁in ▁the ▁ 1 9 7 0 s ▁to ▁over ▁ 3 5 0 ▁times ▁in ▁the ▁early ▁ 2 0 0 0 s . ▁ ▁D iver gence ▁of ▁product ivity ▁and ▁compens ation ▁ ▁Over all ▁One ▁view ▁of ▁economic ▁equ ity ▁is ▁that ▁employee ▁compens ation ▁should ▁rise ▁with ▁product ivity ▁( defined ▁as ▁real ▁output ▁per ▁hour ▁of ▁labor ▁worked ). ▁ ▁In ▁other ▁words , ▁if ▁the ▁employee ▁produces ▁more , ▁they ▁should ▁be ▁paid ▁accordingly . ▁ ▁If ▁pay ▁l ags ▁behind ▁product ivity , ▁income ▁inequality ▁grows , ▁as ▁labor ' s ▁share ▁of ▁the ▁output ▁is ▁falling , ▁while ▁capital ' s ▁share ▁( gener ally ▁higher - in come ▁own ers ) ▁is ▁rising . ▁According ▁to ▁a ▁June ▁ 2 0 1 7 ▁report ▁from ▁the ▁non - part isan ▁Bureau ▁of ▁Labor ▁Statistics ▁( B LS ), ▁product ivity ▁rose ▁in ▁tan dem ▁with ▁employee ▁compens ation ▁( a ▁measure ▁which ▁includes ▁w ages ▁as