In the first two parts of this series, which you can read here and here, four major themes emerged. The generation currently entering their forties have far fewer assets like houses and pensions than their parents or grandparents had at comparable ages. Given their higher educational levels, they earn less than previous generations did at the same age and pay far more for assets like housing. They keep far fewer of the gains from productivity increases, meaning the owners of capital absorb those gains. It is still not clear to us why this divergence between wage growth and productivity growth has taken…

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