Why doesn’t GDP growth lift household incomes?

With inequality rising and household incomes across developed countries stagnating, accurate monitoring of living standards cannot be achieved by relying on GDP per capita alone. In this VoxEU column I analyse with colleagues Brian Nolan and Max Roser the path of divergence between household income and GDP per capita for 27 OECD countries. It finds several reasons why GDP per capita has outpaced median incomes. We recommend to assign median income a central place in official monitoring and assessment of living standards over time.