by JULIE HYLAND
The wages of “lower to middle income” workers are set to collapse, according to a report published last week, with wage rates in 2015 expected to be no higher than they were in 2001.
This comes after a long period in which the wages of such workers were stagnant or fell, even before the economic collapse of 2008.
The report, “Growth without Gain”, published by the Resolution Trust, evaluates the living standards of the 11 million people on low to middle incomes – households without children earning £12,000-£30,000 a year, to households with three children earning £19,200-£48,500 – over a 30-year timeframe.
From 1970 to 1977 there was moderate overall wage growth, with “little, if any, increase in inequality,” it states.
Between 1977 to 2003 wages rose overall, particularly for women workers. However, this was accompanied by “soaring” wage inequality. Whereas pay for those in the middle of the earnings distribution rose by 1.8 percent each year during this period, those in the 90th percentile of earners saw annual growth of 2.7 percent.
The top earners saw even more spectacular growth. The highest 0.1 percent trebled their share of national income, from 1.3 percent to 4.4 percent. Those in the lowest 10th percentile of earners, however, saw their wages rise by just 1 percent.
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