chapter  3
110 Pages

WAGES: Working Longer for Less

Thewidespreaddeteriorationofwagesthatbeganinthe1980shascontinuedoverthecurrentbusinesscyclefrom1989to1995.Wageinequalityhascontinuedinthemostrecentperiodaswell,butitscharacterisnowdifferent-it hasgrownatthe"top"butnotatthe"bottom."Thatis,inthe1980stherewas increasingdivergencebetweenthewagesofhigh-wageandmiddle-wageworkersandbetweenmiddle-wageandlow-wageworkers.Sincethelate1980s,however,topearnershavecontinuedtofarebetterthanmiddle-wageearners,but middle-wageearnershavelostgroundatthesamepaceaslow-wageearners.