

"We’re Seeing a Fundamental Reorganization of Work in America"
5 snips Feb 23, 2024
Dr. Arindrajit Dube, an economics professor at UMass Amherst, dives into real wage growth and its implications for inequality. He shares insights on how real wages for the poorest workers are rising, leading to a shrinking Black-white wage gap. Dube emphasizes a significant shift in the American workforce, likening it to changes seen in the mid-20th century. They discuss how job mobility affects wage growth and the enduring value of college education, despite economic discontent among many workers.
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Real Wage Importance
- Real wage growth, adjusted for inflation, is the most important economic indicator.
- It reflects the majority's prosperity as labor income outweighs capital income for most.
Pandemic Wage Data Skew
- During the 2020 pandemic, median wage data was skewed by mass unemployment.
- The median wage appeared to rise, but this was due to low-wage workers leaving the workforce, not actual wage increases.
Low-Wage Growth Amid Inflation
- Despite high inflation in 2021-2022, lower-earning workers experienced real wage growth.
- This was driven by a tight labor market and the Great Resignation, enabling them to switch to higher-paying jobs.