U.S. wage growth remains slow and uneven, with African-Americans and women still at a clear disadvantage while the wealthiest are accumulating more money than ever, a new analysis of census data shows.
Median real wages grew only 0.2 percent over the past year, according to a report to be released Thursday by the Economic Policy Institute, a progressive think-tank. Wages for African-Americans declined in most wage brackets.
By contrast, those in the 95th wage percentile saw an average pay hike of 1.5 percent over the past year.
The past 17 years have been marked by slower growth for black workers compared with whites in every wage bracket, according to the report. The gender wage gap also remains stark, though among women, the differential between rich and poor was smaller than among men. Women in the 95th percentile made 5.5 times what those in the tenth percentile made, whereas similarly situated rich men made 7 times as much as their poorer brethren.
Ultimately, the research reveals that repeal of the common construction wage has failed to deliver for Indiana taxpayers and the economy. Instead, it has shrunk wages, eroded standards of workmanship, and slowed industry job growth.
Median real wages grew only 0.2 percent over the past year, according to a report to be released Thursday by the Economic Policy Institute, a progressive think-tank. Wages for African-Americans declined in most wage brackets.
By contrast, those in the 95th wage percentile saw an average pay hike of 1.5 percent over the past year.
The past 17 years have been marked by slower growth for black workers compared with whites in every wage bracket, according to the report. The gender wage gap also remains stark, though among women, the differential between rich and poor was smaller than among men. Women in the 95th percentile made 5.5 times what those in the tenth percentile made, whereas similarly situated rich men made 7 times as much as their poorer brethren.
In 2015, Indiana politicians insisted that they could save “between 10 percent and 20 percent” on the cost of schools and other public works, while “opening doors of opportunity” by repealing the state’s prevailing wage law– known as the common construction wage.
It looks like they were wrong.
New research from the Midwest Economic Policy Institute and Colorado State University economist Kevin Duncan has found that repeal of Indiana’s prevailing wage law has not only shrunk wages and increased income inequality, it has failed to make construction projects any cheaper.
Enacted in the 1930s, Indiana’s common construction wage created local-market minimum wages for different types of skilled construction work. Its purpose was to ensure that contractors competing for state projects did so based on core construction competencies, as opposed to who could pay workers performing dangerous and difficult jobs the least. This minimized the risk of shoddy work, put local businesses on a level playing field with firms from out of town, and helped the industry recruit and retain a stable supply of skilled workers—each of which were significant problems at the time.
According to publicly available data, in the 18 months following repeal, the state’s average hourly construction pay dropped by 8 percent. Wages for the lowest-paid Hoosier construction workers have dropped by 15 percent. Looking at northern Indiana’s 335 school construction projects from 2013-2017, we found that there was no statistical difference in average school construction costs following repeal.
Or, in the words of Assistant Indiana House Floor Leader Ed Soliday, “It hasn’t saved a penny.”
No comments:
Post a Comment