[bomb199]

I'm not sure how these are a mystery.

Wages aren't going up because there is nothing forcing them to go up. The upper class just takes their rents and insists paying more wages would tank the economy.

Participation is going down because there's little reason to seek employment if you know the employer is just attempting to shaft you. You produce $40/hr, but they'll pay you $8/hr. You can't negotiate, they'll just find someone who is desperate.

[moorhosj]

I largely agree with you, it was more of a question for those who believe labor economics should act like traditional market economics. You have pointed out the key difference as there isn't perfect information in labor economics like there is in market economics.