Erosion of Wages Accounts for Growing Income Gap
March 6, 2006 | Grantee News | Policy Research

A recent report co-published by the Center of Budget and Policy Priorities, a MacArthur grantee, and the Economic Policy Institute indicates that the gap between the highest-income families and poor and middle-income families has grown significantly since the early 1980s. Findings show that the biggest cause of this rising inequality has been the erosion of wages for the 70 percent of workers with less than a college education. That erosion reflects factors such as globalization, the shift from manufacturing jobs to low-wage service jobs, immigration, the weakening of unions, and the decline in the minimum wage.

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