Wage compression in the most recent period is in stark contrast to the forty-years prior: Annualized real wage growth across the distribution, 1979–2019 and 2019–2023
| Wage group | Annualized wage change, 1979-2019 | Annualized wage change, 2019-2023 |
|---|---|---|
| Low-wage<br>(10th percentile) | 0.1% | 3.1% |
| Lower-middle-wage<br>(avg 20th–40th) | 0.4% | 1.2% |
| Middle-wage<br>(avg 40th–60th) | 0.3% | 0.7% |
| Upper-middle-wage<br>(avg 60th–80th) | 0.5% | 0.5% |
| High-wage<br>(90th percentile) | 0.9% | 1.1% |
Notes: Low-wage is represented by the 10th percentile and high-wage is represented by the 90th percentile. The lower-middle, middle, and upper-middle-wages are the averages of the 20th–40th percentiles, the 40th–60th percentiles, and the 60th–80th percentiles, respectively.
Source: EPI analysis of the Current Population Survey Outgoing Rotation Group microdata, EPI Current Population Survey Extracts, Version 1.0.48 (2024a), https://microdata.epi.org.