“How on earth could young people, whose wages are flat, costs of living skyrocketing, experiencing increased social instability via bigotry, addiction, + violence, expected to live shorter lifespans than previous gens dare question the larger economic forces in their lives?!” - Alexandria Ocasio-Cortez, in an April 4, 2019 tweet
So, what’s happening with wages? I have a source for that: the Federal Reserve Bank of Atlanta, which tracks wage trends in the US. Here’s a recent Atlanta Fed chart on wage growth by income quartile over the past 20 years:
It looks like wages were growing 3-7% from 1998 until the Great Recession. Wage growth then fell to 1-2% for a few years but is now increasing between 3-4% depending on income quartile. So, not flat.
But is there evidence that wages are flat for young people? Meaning, I assume, their wages are unlikely to change much as they get older. Is that actually the case? Not according to this chart:
The trend is clear: median wages go up with age. But what’s the picture for low-wage and low-skill workers? Maybe their prospects aren’t so rosy. Here are a couple charts to shed light on that question:
Ok, most young people age-out of minimum wage jobs. How about young people with limited education? Do they enjoy less wage growth than the college-educated? Not according to this Atlanta Fed chart:
Bottom line: wages are not flat for young people. Of course, there’s a subset of American workers who get stuck at the bottom. They need help. For the rest, things are looking up.