… so why aren't paychecks rising at the same pace?

As productivity has increased, the economic gain for workers hasn’t kept up with the value their output has added to the economy.  In other words, workers aren’t sharing the wealth proportionately. In most states, including California, labor productivity is increasing faster than wages, which means workers are losing ground in many places.

In fact, 32 states between 2007 and 2017 saw the average annual percentage change in the productivity-compensation gap fall into negative territory. California is among the states with the highest gap.