Posted 12/4/2023, 11:00:00 AM
Tight Labor Market Drives Faster Wage Growth for Low-Income Workers, Narrowing Inequality Gap
- Restaurant workers' wages have risen 66% in the last decade, outpacing the 48% rise in food prices outside the home
- The tight labor market before and during the pandemic has driven stronger wage growth for low-wage workers
- Wage inequality has started to narrow, with wages rising faster for low-income workers than high-income ones recently
- Employers may need to adjust business models to sustain higher wages amid the tight labor market
- The wage growth trend could last until employers invest more significantly in automation