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Low-wage workers have seen faster wage gains since the beginning of the pandemic. Two factors have played into this: a very tight labor market for “standing-up jobs” together with the rise in working from home and remote work for “sitting-down jobs.”
Wage gains have been higher for “standing-up jobs”
The U.S. labor market has experienced an unprecedented wage compression. Salaries at the lower end are rising faster than salaries at the upper end of the wage distribution for the first time in decades.
Following the Great Recession, low-skilled workers saw significantly lower wage gains than high-skilled workers, a result of
