Low wages aren't a growing problem

David Abraham and Simcha Barkai

No 322, Working Papers from The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State

Abstract: Statements by high-profile political figures and supporting academic research have led to a common perception of worsening job prospects for low-wage workers in the US. In this paper, we show that since the early 1980s there has been a decline in the share of workers earning low wages. This holds across sub-populations and across thresholds for determining what constitutes a low wage. Much of the decline occurs over two periods: the late 1990s and the late 2010s. The decline is greater and steadier for women than for men. We further show that the worker-level persistence of low wages has not increased, and has likely decreased, over time.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cbscwp:322

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