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Rapid wage growth at the bottom has offset rising US inequality

Author

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  • Clem Aeppli

    (a Department of Sociology, Harvard University, Cambridge, MA 02138;)

  • Nathan Wilmers

    (b Sloan School of Management, Massachusetts Institute of Technology, Cambridge, MA 02142)

Abstract

US earnings inequality rose steadily for over three decades, reshaping the labor market and driving much policy attention. However, overall US earnings inequality has plateaued in the last decade. This is due to particularly fast earnings growth among low-wage workers rather than median-wage workers catching up with those at the top. Key drivers of secular rising inequality have continued. However, these have been offset by rapid, although unsecured, earnings growth at the bottom of the labor market.

Suggested Citation

  • Clem Aeppli & Nathan Wilmers, 2022. "Rapid wage growth at the bottom has offset rising US inequality," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 119(42), pages 2204305119-, October.
    • Handle: RePEc:nas:journl:v:119:y:2022:p:e2204305119
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    Cited by:

    1. David Autor & Arindrajit Dube & Annie McGrew, 2023. "The Unexpected Compression: Competition at Work in the Low Wage Labor Market," NBER Working Papers 31010, National Bureau of Economic Research, Inc.
    2. Patrick Mokre, 2023. "Lohnungleichheit sinkt – getragen von Knappheit auf dem Arbeitsmarkt," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 49(4), pages 5-15.

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