Compression in the Wage Distribution During the Post-Covid-19 Labor Market

Daniel Carroll and Christopher J. Walker
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Christopher J. Walker: https://www.clevelandfed.org/people/profiles/w/walker-christopher-j

Economic Commentary, 2025, vol. 2025, issue 06, 9

Abstract: The COVID-19 pandemic caused changes for business across all industries, though the effects were unequal. As lockdown restrictions aimed at mitigating the spread of COVID-19 were relaxed, nominal wage growth rose sharply in leisure and hospitality and in trade and transportation, the two industries with the highest concentration of low-wage workers. In fact, wage growth was most pronounced for workers in the bottom 50 percent of the wage distribution who changed jobs into one of these industries.

Keywords: Labor economics; COVID-19 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.26509/frbc-ec-202506

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