The returns to labour and to equities

1963 quarter 1 to 1996 quarter 4

Average percent change total UK post-tax wages: 9.9%

Variability of change in after tax labour income* 13.29%

Average percent return on UK stock market 18.9%

Variability of returns on the UK stock market* 43.5%

Correlation between wage change

and return on the stock market 0.027#

*standard deviation of the (annualised) quarterly percentage change

# insignificantly different from zero.