Select Page

Wage inequality has soared in many of the United States’ biggest cities over the past 35 years as companies cluster in urban centers, driving big paychecks for in-demand workers, according to a report by the New York Federal Reserve here.

At the same time, a broad swath of Americans in the very same cities is being left behind, with wage increases for low- to middle-wage employees failing to keep pace with the dramatic gains by high-end workers.

Cities such as New York, Houston and San Francisco have moved to near the top of the rankings in recent years in terms of wage inequality, the report by economists Jaison Abel and Richard Deitz released on Monday found.

In San Francisco, inflation-adjusted wages for workers in the top 5% of wage earners grew by 120% between 1980 and 2015, while wages for the bottom 10% of earners grew by just 20%.

In New York City, wages grew by 110% for the top 5% of workers, but just 15% for the bottom 10%, according to the report.

Economic inequality has been rising across the United States as globalization and automation eliminate some middle-income jobs and highly skilled workers in technology, finance and other sectors win higher wage premiums.

The changes are making city life more challenging for lower wage workers, who are struggling to keep up with rising housing costs and other bills.

“For people in these lower paid occupations, it’s less appealing,” said Nick Bunker, an economist at Indeed Hire Lab. “There are fewer opportunities.” Read more

Read also:Trump administration orders ambassador at center of Ukraine scandal not to appear before Congress

Wage inequality has soared in many of the United States’ biggest cities over the past 35 years as companies cluster in urban centers, driving big paychecks for in-demand workers, according to a report by the New York Federal Reserve here.

Wage inequality has soared in many of the United States’ biggest cities over the past 35 years as companies cluster in urban centers, driving big paychecks for in-demand workers, according to a report by the New York Federal Reserve here.

Wage inequality has soared in many of the United States’ biggest cities over the past 35 years as companies cluster in urban centers, driving big paychecks for in-demand workers, according to a report by the New York Federal Reserve here.