Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Lazaro Gamio/Axios

In the U.S., Europe and beyond, big companies are squeezing workers, overpowering their ability to negotiate wages, and leaving them with at best stagnant living standards, according to new studies.

What's going on: In March, we wrote about a decades-long reduction in the traditional share of the economic pie going to workers, a shift that economists call a primary reason for growing inequality. But in new papers and speeches, economists say the problem is global, not just in the U.S., cutting across developed and emerging nations.

Economists largely blame the problem on outsized market power of big companies — among them Amazon, Apple and Google in the U.S., HSBC and Tesco in the U.K., Siemens in Germany, and Alibaba and Tencent in China.

Driving the news: Amazon today reached $1 trillion in market value — like Apple, which reached the milestone last month — reflecting the remarkable change it has wrought on employment, economics and human behavior around the world.

  • Medium-size and merely large companies have not had such impact and are not to blame for flat wages, said John Van Reenan, an economics professor at MIT.
  • He said labor associated with most U.S. companies has not seen a shift. "It’s all coming from what’s happening to the top amongst the largest firms," he told Axios.
  • In a talk last month, Van Reenan and his colleagues coined such gargantuans as "superstar companies," which he said mainly grow up in what have become "winner-take-all" sectors.

The trend began earlier outside the U.S. In Europe, the labor decline began in the mid-1970s, a decade and a half before it was noticed in the U.S., according to a recent paper from the Federal Reserve Bank of Cleveland.

Economists at the International Monetary Fund said a half-century low point in labor's share of the economic benefits was reached before the financial crash and has not recovered since, according to a July 2017 paper.

  • In an interview, Mitali Das, who led the IMF research team, said globalization has played no role in the labor decline in advanced economies. Instead, it's been caused by technological advances including automation.
  • Das said her team's results align with Van Reenan's at MIT. "For one thing, the superstars in their analysis are those that adopted technology in spades — Facebook, Google, Apple, etc."

Go deeper: Robots are shifting income from workers to owners

Go deeper

"Neanderthal thinking": Biden slams states lifting mask mandates

States that are relaxing coronavirus restrictions are making "a big mistake," President Biden told reporters on Wednesday, adding: "The last thing we need is Neanderthal thinking."

Driving the news: Texas Gov. Greg Abbott (R) said Wednesday he will end all coronavirus restrictions via executive order, although some businesses are continuing to ask patrons to wear face masks. Mississippi is lifting its mask mandate for all counties Wednesday, per Gov. Tate Reeves (R).

Cuomo: "I am not going to resign"

New York Gov. Andrew Cuomo apologized Wednesday for acting in a way that made women feel "uncomfortable," but insisted that he has "never touched anyone inappropriately" and said he will not resign.

Driving the news: Cuomo reiterated in his first public appearance since sexual harassment allegations surfaced that he will fully cooperate with a team of independent investigators appointed by New York Attorney General Letitia James, but suggested that demands for his resignation from were simply "politics."

Facebook to lift political ad ban imposed after November election

Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images

Facebook will finally allow advertisers to resume running political and social issue ads in the U.S. on Thursday, according to a company update.

The big picture: Facebook and rival Google instituted political ad bans to slow the spread of misinformation and curb confusion around the presidential election and its aftermath.