Full Citation

Title: Rapid wage growth at the bottom has offset rising US inequality

Citation Type: Journal Article

Publication Year: 2022

ISBN:

ISSN: 10916490

DOI: 10.1073/PNAS.2204305119/SUPPL_FILE/PNAS.2204305119.SAPP.PDF

NSFID:

PMCID:

PMID: 36191177

Abstract: US earnings inequality has not increased in the last decade. This marks the first sustained reversal of rising earnings inequality since 1980. We document this shift across eight data sources using worker surveys, employer-reported data, and administrative data. The reversal is due to a shrinking gap between low-wage and median-wage workers. In contrast, the gap between top and median workers has persisted. Rising pay for low-wage workers is not mainly due to the changing composition of workers or jobs, minimum wage increases, or workplace-specific sources of inequality. Instead, it is due to broadly rising pay in low-wage occupations, which has particularly benefited workers in tightening labor markets. Rebounding post–Great Recession labor demand at the bottom offset enduring drivers of inequality.

Url: https://www.pnas.org/doi/abs/10.1073/pnas.2204305119

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Authors: Aeppli, Clem; Wilmers, Nathan

Periodical (Full): PNAS

Issue: 42

Volume: 119

Pages: 1-7

Data Collections: IPUMS USA, IPUMS CPS

Topics: Poverty and Welfare

Countries: