Top 1.0% of earners see wages up 157.8% since 1979

By Lawrence Mishel and Melat Kassa

Newly available wage data for 2018 show that annual wages for the top 1.0% were nearly flat (up 0.2%) while wages for the bottom 90% rose an above-average 1.4%. Still, the top 1.0% has done far better in the 2009–18 recovery (their wages rose 19.2%) than did those in the bottom 90%, whose wages rose only 6.8%. Over the last four decades since 1979, the top 1.0% saw their wages grow by 157.8% and those in the top 0.1% had wages grow more than twice as fast, up 340.7%. In contrast those in the bottom 90% had annual wages grow by 23.9% from 1979 to 2018. This disparity in wage growth reflects a sharp long-term rise in the share of total wages earned by those in the top 1.0% and 0.1%.

These are the results of EPI’s updated series on wages by earning group, which is developed from published Social Security Administration data and updates the wage series from 1947–2004 originally published by Kopczuk, Saez and Song (2010). These data, unlike the usual source of our other wage analyses (the Current Population Survey) allow us to estimate wage trends for the top 1.0% and top 0.1% of earners, as well as those for the bottom 90% and other categories among the top 10% of earners. These data are not top-coded, meaning the underlying earnings reported are actual earnings and not “capped” or “top-coded” for confidentiality.

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Reposted from EPI

Stronger Together

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Union Matters

Powering America

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities.

Fierce thunderstorms, heavy snows and unusually powerful hurricanes ravaged America’s fragile power grid and plunged millions into darkness this year.

And even as these natural disasters wreaked havoc across the country, COVID-19 stay-at-home orders sparked a surge in residential electrical demand, placing new stress on a failing system.

A long-overdue overhaul of the nation’s electrical infrastructure would not only ensure America continues functioning during a crisis but help to reinvigorate the pandemic-shattered economy.

Built in the 1950s and 60s, most of America’s electricity transmission and distribution infrastructure lives on borrowed time. Engineers never designed it to withstand today’s increasingly frequent and catastrophic storms fueled by climate change, let alone the threats posed by hackers and terrorists.

To ensure a reliable power supply for homes, schools and businesses, America needs to invest in a more resilient, higher capacity grid.

That means either burying electrical lines or insulating above-ground wires and replacing wooden utility poles with structures made of steel or concrete. Other strategies include creating a battery-storage system to provide backup power, building coastal barriers to protect infrastructure against storm surge and further diversifying into wind and solar production.

Also, a shift toward more localized generation and distribution networks would limit the impact of any one power outage.

Making these upgrades with U.S.-made materials and labor will both stimulate the economy and protect national security. American steelworkers, tradespeople and manufacturing workers have the expertise to build a power grid strong enough to weather whatever storms come America’s way.

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