9:12 am April 18, 2012, by David Markiewicz
Since the recession ended nearly three years ago, the top 10 percent of earners in America have seen their pay rise 7 percent before inflation, while those in the bottom 10 percent have seen their earnings increase only 2.5 percent.
The growing gap between the highest and lowest-paid workers continues a pre-downturn trend, one that’s been widening for decades, according to The Wall Street Journal, using data from the U.S. Labor Department.
From 2003 to 2007, the difference in pay increases between top and bottom earners was 3.5 percent.
Globalization and the rise of technology
“Globalization has shifted many of America’s low-skilled, high-paid manufacturing jobs overseas, while technology has made U.S. firms more productive but rendered some jobs obsolete. The result: America’s labor market increasingly looks divided between jobs that require high education and those that don’t,” the report states.
Not everyone thinks this is so alarming, though. Some experts say there hasn’t been an erosion of upward social mobility from the lower to the middle class in the last half-century. The gap has been the subject of political debate, however.
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