Lower-paying industries are seeing the fastest wage-growth in the U.S.

[Plazma Inferno!]

Bank of America Merrill Lynch economists Emanuella Enenajor and Lisa Berlin found that industries which rank in the bottom 20 percent by pay are seeing incomes rise at a much faster clip than higher-paying sectors.
A back-of-the envelope analysis conducted by Enenajor and Berlin suggests that minimum wage increases in U.S. states this year account for roughly half of the outperformance in wage growth at the lower end.
The other half of the story? The supply of labor for these lower-paying jobs, which typically don't require higher education degrees, has been declining, so employers are being forced to pay higher wages to retain workers.

http://www.bloomberg.com/news/artic...are-seeing-the-fastest-wage-growth-in-the-u-s

 

[iceaura]

2% of 150k is 3000 dollars. 4% of 15k is 600 dollars.

The rich are getting raises that are around five times as large as the raises the poor are getting. And that's before return to their capital is figured in.

 

[billvon]

Bank of America Merrill Lynch economists Emanuella Enenajor and Lisa Berlin found that industries which rank in the bottom 20 percent by pay are seeing incomes rise at a much faster clip than higher-paying sectors.
A back-of-the envelope analysis conducted by Enenajor and Berlin suggests that minimum wage increases in U.S. states this year account for roughly half of the outperformance in wage growth at the lower end.
The other half of the story? The supply of labor for these lower-paying jobs, which typically don't require higher education degrees, has been declining, so employers are being forced to pay higher wages to retain workers.

Excellent example of the pluses and minuses of raising the minimum wage. Wages for the people who work go up - but companies can't afford as much labor.

 

[iceaura]

Excellent example of the pluses and minuses of raising the minimum wage. Wages for the people who work go up - but companies can't afford as much labor.

There is no minus in that example. It is all plus: not only were wages forced up by the law, but the competition for labor - low wage jobholders now having better paid options - seems to have been increased by it as well. That is the opposite of the naive and unresearched presumption by many economists that increasing low end wages by fiat would lead to a reduction of low wage jobs, and reduced market competition for low end employees.