Data Sources
| Source | What We Use It For | Link |
|---|---|---|
| Economic Policy Institute | Productivity-pay gap data (1979-2024) | epi.org |
| Bureau of Labor Statistics (OEWS) | Occupational wage data by metro area and industry | bls.gov/oes |
| Bureau of Labor Statistics (CPI) | Consumer price inflation, CPI-U-RS deflators | bls.gov/cpi |
| Bureau of Economic Analysis (RPP) | Regional Price Parities by state and metro | bea.gov |
| Bureau of Economic Analysis (GDP by Industry) | Value-added per worker by industry and state | bea.gov |
| Census Bureau (ACS) | Housing cost trends, gross rent as % of income (GRAPI) | census.gov |
| HUD Fair Market Rents | Rent data by ZIP code | huduser.gov |
| Federal Reserve (FRED) | Economic indicators, labor share data | fred.stlouisfed.org |
| Federal Reserve (SHED) | Survey of Household Economics and Decisionmaking | federalreserve.gov |
Calculation Methodology
Productivity-Wage Gap (Impact Calculator)
For each year of your career, we measure how much productivity outpaced wages using industry-specific data from BLS Labor Productivity and Costs. Different industries experience different dynamics: construction has nearly flat productivity growth, while tech and finance show large divergence.
We apply a conservative 25% share of the raw gap to your individual estimate. Not all productivity gains flow directly to wages; some go to capital investment, technology, and overhead. The full gap factor is shown in your results for transparency.
Capped at BEA value-added per worker for your industry and state
Market Comparison (Worth Gap Analyzer)
Your market median starts with BLS occupational wage data for your metro area or state. We then adjust for:
- Regional Price Parities (RPP) from BEA, reflecting local cost of living
- Experience normalization using a logarithmic model (growth factor 0.10) where industry-median tenure equals 1.0
- Occupation adjustment using BLS OEWS percentile data for your declared role level
Experience Growth Model
The impact calculator uses a three-tier experience model reflecting BLS age-earnings data:
- Years 1-10: 2.5% per year (steep early-career growth)
- Years 11-20: 1.0% per year (mid-career deceleration)
- Years 21+: 0.2% per year (late-career near-stagnation)
Housing Burden
Home price-to-income ratio uses national median data: 3.5x in 1985, approximately 5.5x today (FRED/NAR 2025). Rent burden uses Census ACS median gross rent as a percentage of income (GRAPI): 32.8% nationally.
What "Structural Benchmark" Means
This is a structural estimate, not a precise individual calculation. It applies the national and industry-level productivity-wage gap to your specific salary. Your actual value depends on your specific role, employer, and individual contributions. We call it a "benchmark" to signal that it is one lens among many for understanding your economic position.
Known Limitations
National gap applied to individuals. We apply a national or industry-level productivity-wage gap to your individual salary. This is a structural benchmark, not a precise measure of what any specific employer owes a specific worker.
Deflator choice matters. EPI uses CPI-U-RS for wages and IPD for productivity. Using a single deflator closes roughly 40% of the apparent gap. We use EPI's methodology because it best captures the worker's experience of real purchasing power.
Compensation vs. wages. Total compensation (including health insurance, retirement contributions) has grown more than wages alone, though still less than productivity. Our primary calculations use wage data.
Industry productivity varies enormously. A worker in computer electronics manufacturing and a worker in food service experience completely different productivity dynamics. We use industry-specific indices where available, but sector groupings are still broad.
The 25% conservative factor is a judgment call. No peer-reviewed study recommends this specific fraction. We chose it as a deliberately conservative estimate of how much of the structural gap is attributable to individual workers. The full gap factor is always shown alongside for transparency.
Experience model is generic. Actual wage growth by experience varies significantly by education, industry, and region. Our three-tier model is an approximation based on BLS aggregate age-earnings data.
Housing data uses national medians. Your local market may differ substantially. State-level data is available for corporate ownership rates and price-to-income ratios.
Academic Context
The productivity-wage gap is a contested topic in economics. We follow EPI's methodology, which shows a substantial divergence between net productivity and typical worker compensation since the late 1970s.
This is challenged by researchers at the Heritage Foundation, American Enterprise Institute, and others who argue that using consistent deflators and total compensation (rather than wages alone) significantly narrows the gap. Feldstein (2008) and Pessoa & Van Reenen (2013) provide detailed critiques.
We believe the gap is real and consequential. We also believe transparency matters more than advocacy. We encourage users to explore multiple perspectives and form their own conclusions.
Privacy
Calculations currently run on our server. Your inputs are processed in memory and immediately discarded. Nothing is stored, logged, or transmitted to third parties. We are evaluating a future version that runs entirely in your browser for additional privacy assurance.
We proudly do not store or share your numbers, because we believe in informational freedom.
Version History
Audit remediation release. Corrected Federal Reserve emergency savings figure from 47% to 37% (SHED 2023). Added qualifier to $50B wage theft estimate. Corrected housing price-to-income ratio from 7.5x to 5.5x (FRED/NAR 2025 data). Corrected rent burden from 37% to 32.8% (Census ACS median GRAPI). Added three-tier experience model (2.5% / 1.0% / 0.2%). Documented the 25% conservative productivity factor with full gap transparency. Renamed "Fair Value" to "Structural Benchmark." Replaced macro-level negotiation script with practical three-path framework. Added methodology page.
Initial release. Industry-specific productivity indices, RPP-based regional adjustment, OEWS occupation weighting, stratified benefits multiplier, CPI-U-RS deflation, gap decomposition, and data provenance system.