Back to 1998. A decade of declining real wages (USA)

Taken from the Levy Institute – something we’ve all known for a long time. Declining real wages, especially affected by the increasing skill set visible in the workforce:

Real-World Economics Review Blog

Earning less than your your older siblings and nephews and nieces is getting increasingly likely, though less so for women and blacks. This is not mainly a sectoral composition effect.

From the Levy institute:

Workers’ wages are the most important component of household money income. Representing about 83 percent of total household income, they are the driving force behind changes in income growth and inequality. Consequently, changes in wages play an important role in determining trends in income inequality, household spending, and the overall welfare of households. In the last 20 years, while nominal wages have shown a consistent and upward trend (Figure 1), real wages have progressed much more slowly … after a long period (beginning in 1973) of stagnant real wages, in the late 1990s low unemployment rates, increases in the minimum wage, and improvements in labor productivity contributed to a boost in wages, which translated into 12.4…

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About Damian Merciar
Damian Merciar is Managing Director of Merciar Business Consulting, http://www.merciar.com, a niche business economics consultancy founded in 1998. He has over twenty years experience in the areas of commercial Business Strategy. He is experienced in the transition environments of nationalized to private sector state utilities and the senior practice of commercial management, advisorial consultancy, and implementation. He has carried out policy advisory work for government ministries and been an adviser to institutional bodies proposing changes to government. He holds an MSc Economics from the University of Surrey’s leading Economics department and an MBA from the University of Kent. Also attending the leading University in the Middle East, studying International Relations and Language, for which he won a competitive international scholarship, and has a BA (Hons) in Economic History and Political Economy from the University of Portsmouth. He is currently based in London.

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