How can the UK boost the wage share? The rebalancing requires, above all, a new social contract with labour

The wage share – wages expressed as a share of total national income – has fallen since the early 1980s, highlighting the decoupling of earnings from output and accounting for a third of the decline in median wages relative to GDP in the UK over the last 35 years. Howard Reed summarises his recent report, arguing a new social contract is required, and estimates the contribution that a selection of policies might make towards reversing the decline in the wage share.