Americans are feeling the impoverishing effects of the shift from middle-income to low-income jobs. The disappearance—or, more accurately, downsizing—of living-wage jobs is documented by numerous reports that reveal the suddenness and the extent of this affront to middle America.
First, the Neoliberal Explanation: It’s Not Really Happening
Business writer Robert Samuelson [1] calls the post-recession low-wage recovery a “myth.” To support his claim he cites a study from the Economic Policy Institute [2] which, according to Samuelson, proves that “the economy’s employment profile—the split between high- and low-paying jobs—hasn’t changed much since the recession or, indeed, the turn of the century.”
But the EPI analysis is based on average wages within industries, rather than on the median, which reflects unequal growth. If the median had kept up with the average over the past 15 years, the current median wage would be $1/hour higher [3], or about $2,000 per year. The employment profile has actually changed a great deal since the year 2000.