march 9, 2012 making work pay how raising wages is key to boosting living standards january 7, 2016...
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Growing together, then growing apart 3TRANSCRIPT
March 9, 2012
Making Work Pay – How Raising Wages is Key to
Boosting Living Standards
January 7, 2016Atlanta, GA
David Cooper Economic Policy Institute
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The benefits of increased productivity over the last 40 years have not gone to the middle
class
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1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012-50%
0%
50%
100%
150%
200%
250%
300%
Productivity
240.7%
Real median family income
137.1%
Productivity and real median family income growth, 1948–2013
Source: EP'sI analysis of Current Population Survey Annual Social and Economic Supplement Historical In-come Tables, (Table F-5) and Bureau of Labor Statistics, Productivity – Major Sector Productivity and Costs database
Growing together, then growing apart
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Where did all that productivity growth go?
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Meager earnings growth for most Americans
Rising inequality, driven by stagnant wages, has stifled improvements in living standards for most of the last generation of Americans, and stymied our ability to make progress in reducing poverty.
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The “inequality tax”
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Progress against poverty stalled
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Stagnant income comes from stagnant wages
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For most, almost no growth in hourly pay
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The picture for Georgia
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1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
10th percentile -7.2%
50th percentile (Median)
7.7%
90th percentile
201424.1%
Change in real hourly wages in GA since 1979, by wage decile
Source: EPI analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2014
12Source: EPI Family Budget Calculator: http://www.epi.org/resources/budget/
Family Budget for Atlanta, GA
Policies that would raise wages
1. Raising the minimum wage & tipped minimum2. Strengthen and enforce labor standards– Wage theft, misclassification, overtime rules– Non-competes / mandatory arbitration
3. Paid sick leave / family leave4. Fair schedule laws / no just-in-time scheduling5. Strengthen/maintain unemployment insurance6. Protect the right to organize
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Policies that would raise wages
1. Raising the minimum wage & tipped minimum2. Strengthen and enforce labor standards– Wage theft, misclassification, overtime rules– Non-competes / mandatory arbitration
3. Paid sick leave / family leave4. Fair schedule laws / no just-in-time scheduling5. Strengthen/maintain unemployment insurance6. Protect the right to organize
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Policies that would raise wages
1. Raising the minimum wage & tipped minimum2. Strengthen and enforce labor standards– Wage theft, misclassification, overtime rules– Non-competes / mandatory arbitration
3. Paid sick leave / family leave4. Fair schedule laws / no just-in-time scheduling5. Strengthen/maintain unemployment insurance6. Protect the right to organize
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Education is important, but not a panacea
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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
-0.1
-0.08
-0.06
-0.04
-0.02
0
0.02
0.04
0.06
-5.7%
-3.8%
-9.3%
-3.1%
Real hourly wages since 2000 by education level (2014$)
Less than high school High school Some college Bachelor's or higher
Source: EPI analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2014
For more information
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David [email protected]
Economic Policy Institute1333 H Street, NW
Suite 300, East TowerWashington, DC 20005-4707
202.775.8810
www.epi.org