Monday, March 14, 2016

Wage inequality continued its 35-year rise in 2015

The report was written by Elise Gould and published by the Economic Policy Institute. She writes that "The way rising inequality has directly affected most Americans is through sluggish hourly wage growth in recent decades, despite an expanding and increasingly productive economy". Gould substantiates her position and details them in her key findings. While real hourly wages  grew across the board in 2015, this is largely due to a sharp dip in inflation; growth in nominal wages  has not accelerated. Additionally Gould found that over 2000–2015, wage growth was faster among the more educated, but not fast enough to explain growing wage inequality. The reporter concludes the report with several recommendations to ameliorate the issue. Gould writes,
"To see strong broad-based wage growth outside of the tightest of labor markets, policymakers could strengthen labor standards, such as by raising the minimum wage, expanding eligibility for overtime pay, and protecting and strengthening workers’ right to bargain collectively for higher wages and benefits".

http://www.epi.org/publication/wage-inequality-continued-its-35-year-rise-in-2015/#conclusion

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