Chart of the day

Posted: 27 August 2014 in Uncategorized
Tags: , , , , ,

hourly wages-1979-2013

According to the Economic Policy Institute [pdf],

For all but the highest earners, hourly wages have either stagnated or declined since 1979 (with the exception of a period of strong across-the-board wage growth in the late 1990s). Median hourly wages rose just 6.1 percent (or 0.2 percent annually) between 1979 and 2013, compared with a decline of 5.3 percent (or -0.2 percent annually) for the 10th percentile worker (i.e., the worker who earns more than only 10 percent of workers). Over the same period, the 95th percentile worker saw growth of 40.6 percent, for an annual gain of 1.0 percent.

During that same period, productivity in the U.S. economy grew 64.9 percent.

annual wages-1979-2012

Only the “wages” of the top 1 percent (when measured in terms of real annual wages) surpassed the growth of productivity. The cumulative change in the wages of all other groups was less.

In other words, most of the growing amount of value produced by American workers wasn’t paid back to them in the form of wages but, instead, was either retained by their employers or distributed to a tiny group of CEOs and managers at the top.

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