The past two and a half decades have been good for big business. While the size of the private sector as a percentage of OECD economies has held relatively steady since the mid-1990s, the share of companies with more than $1bn in annual revenue has grown by 60 per cent since 1995. The big have got bigger, and the rich have got richer. But behind that headline trend, there is a great deal of geographic and socio-economic nuance, as a new McKinsey Global Institute white paper shows.

Researchers examined the economic contributions of both private and public companies in rich countries over the past 25 years. Reading the paper, I was struck by five key lessons for policymakers and corporate leaders which should inform the debate over the role of corporations in society.

First, the losses suffered by labour relative to capital are even more extreme than previously thought. While productivity gains since the mid-1990s amounted to 25 per cent in real terms, wages grew only 11 per cent. Meanwhile, capital income increased by two-thirds. If there is any doubt that the link between productivity and wages has broken down, this should put it to rest.