Econintersect: There is a remarkable difference between wage growth for the top 25% of wage earners and the lowest 25%. A video from The Wall Street Journal shows Ben Casselman explaining the inequality of wage growth since The Great Recession. The top group has double the wage growth of the bottom group.
As you watch the video keep in mind that the growth is shown for nominal wages and for the top group that amounts to only 3% a year. Adjusted for inflation (CPI, 2009-2012) the annual wage growth averaged only 1.3% over the four years. For the low group real wage growth was less than 2/3 of 1% per year.
Read also (by Ben Casselman): Low Wage Workers Weren’t Always Left Behind.
Hat tip to Barry Ritholtz at The Big Picture.
- Job Gap Widens in Uneven Recovery (Ben Casselman, The Wall Street Journal, 11 November 2013)