A new report says wages are growing, but unequally
A report released Thursday by the think tank the Economic Policy Institute takes a deep look at wages across America. The overall picture it paints is not so great.
According to the report, there has been wage growth, but it’s slow and unequal. High earners are experiencing bigger gains.
“Why is it that typical workers are not seeing faster growth, even as they are more productive?” said Elise Gould, report author. “I think that’s because they just have less bargaining power.”
But Michael Strain, economist at the American Enterprise Institute, said there other measures of income, which include things like taxes, and healthcare benefits.
“If you look at data from the Congressional Budget Office, for example, that look at a more comprehensive measure of income, there you see that since the Great Recession, income inequality has actually decreased,” Strain said.
The EPI report says median wage across the US — so the wage at which half the workforce is paid less, and half is paid more — was $19.33 an hour in 2019, or about $40,000 a year.
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