The State of Working America, 12th Edition

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The State of Working America, 12th Edition

  1. 1. The State of Working America, 12th EditionLawrence Mishel, Josh Bivens, Elise Gould, Heidi Shierholz Economic Policy Institute Cornell University Press September 2012
  2. 2. Main findings we’ll discuss• A Lost Decade of income growth for low and middle-income Americans has already happened• Another Lost Decade is in the pipeline, unless policy changes to combat high unemployment much more aggressively• Rising inequality has been the primary barrier to income growth for the last generation of low and middle-income families/households• The fingerprints of intentional policy decisions are all over this upward redistribution www.epi.org 2
  3. 3. America’s broad middle class hasalready suffered a ‘Lost Decade’
  4. 4. www.epi.org 4
  5. 5. www.epi.org 5
  6. 6. …and faces the threat of another ‘Lost Decade’
  7. 7. www.epi.org 7
  8. 8. www.epi.org 8
  9. 9. Rising inequality blocked wage andincome growth for most of the last generation of Americans…. First we’ll show the trends…
  10. 10. www.epi.org 10
  11. 11. www.epi.org 11
  12. 12. www.epi.org 12
  13. 13. Now the consequences of rising inequality…
  14. 14. www.epi.org 15
  15. 15. www.epi.org 16
  16. 16. www.epi.org 17
  17. 17. www.epi.org 18
  18. 18. www.epi.org 19
  19. 19. The fingerprints of intentional policydecisions are all over this increased inequality of wages and incomes
  20. 20. www.epi.org 21
  21. 21. Illustrating policy’s impact by examining three “wage-gaps”• Top 1% wages vs. everybody else, grew continuously 1979-2011 except during stock declines• CEO/executive compensation• Expanded and increasingly highly-paid finance• Middle/bottom (50/10 wage gap), only grew in 1980s• Minimum wage• Unemployment• Top vs. middle (95/50 wage gap), grew continuously 1979-2011• Unemployment• Globalization• Deunionization• Industry deregulation (trucking, airline, etc.)/privatization• Eroded labor standards/norms more generally• Not: health care costs; Skills/education deficit www.epi.org 22
  22. 22. Explaining top wages www.epi.org 23
  23. 23. www.epi.org 24
  24. 24. www.epi.org 25
  25. 25. www.epi.org 26
  26. 26. Explainingmiddle/bottom wage gap www.epi.org 27
  27. 27. Explains 57% of the overall increase in the “50/10 wage gap” between 1979 and 2011,66% of the female 50/10 wage gap. www.epi.org 28
  28. 28. www.epi.org 29
  29. 29. Explainingtop/middle wage gap www.epi.org 30
  30. 30. Trade with less developed nations explains a third of the overall rise in the collegepremium between 1979 and 2011 – but explains 90% of the increase post-1995. www.epi.org 31
  31. 31. Explains a third of the increase in male wage inequality, and 20% of the increase inwomen’s wage inequality*.*Wage inequality as measured by the log variance of the wage distribution. www.epi.org 32
  32. 32. What else is in State of Working America?• Evidence on how there is no “skills-gap” and why inequality is not about lagging education• Evidence on deep poverty reaching its highest rate in recorded history in 2010• Evidence that the US today is not a mobile society – relative to its own history or its international peers• Evidence that there has been no “democratization” of the stock market• Evidence on that Social Security and Medicare have contributed more to middle-income growth than wages and salaries over the past generationMarch 9, 2009 www.epi.org 33
  33. 33. Favorites section
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  35. 35. www.epi.org 36
  36. 36. March 9, 2009 www.epi.org 37

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