Low- and middle-wage workers’ wages grow more quickly in response to an improving labor market than high-income workers’ wages: Change in average annual real wage growth in response to a 1-percentage-point increase in unemployment or employment rates over the 1980–2016 period, by wage percentile
|10th-percentile wage||50th-percentile wage||90th-percentile wage|
|EPOP, ages 16+||0.226744||0.190327||0.09891|
Notes: Each bar is the coefficient from the regression of the real annual percent change in a given percentile’s wage on the measure of labor market tightness. Regressions include state and year fixed effects. Additional details and estimates are in the appendix. EPOP refers to the employment-to-population ratio; prime-age refers to adults ages 25–54.
Source: Authors’ analysis of annual, state-level aggregations of Current Population Survey Outgoing Rotation Group microdata, 1979–2016