Pandemic Policies Reversed 40-Year Trend of Rising Wage Inequality, Fueling Pay Gains for Low-Income Workers

Wages grew much faster for low-wage workers (12.1%) than high-wage workers (0.9%) from 2019-2023, reversing a 40-year trend of rising inequality
The growth for low-wage workers was likely driven by pandemic relief policies like stimulus checks and enhanced unemployment benefits
Some argue the relief policies allowed low-wage workers to be pickier in finding jobs; others argue it kept workers from returning to work
Wage inequality has been rising since 1979, with top 1% earnings growing 206% while bottom 90% grew 29%
Sustaining wage gains depends on policies like raising the minimum wage and Federal Reserve interest rate cuts