In recent years, the economy’s low-wage workers have experienced the most robust wage gains, closing the gap between the highest and lowest quartiles and compressing the labor market. To note, these gains are nominal and do not account for the rapid pace of inflation in the past year.
It’s not just low-wage workers who have seen strong nominal wage gains. Spurred by the so-called “Great Resignation,” job-switchers are notching impressive pay increases as well. Job switchers have dramatically outperformed job stayers in wage growth. From December 2020 to December 2022, the gap between the two widened