In recent years, wage disparities in the United States have shown signs of narrowing, driven by a combination of labor market conditions, economic instability, and policy decisions that favor certain groups. A tight labor market, where demand for workers exceeds supply, has contributed to upward pressure on wages, particularly at the lower end of the income spectrum. This dynamic has helped reduce the gap between high earners and those in lower-income brackets. At the same time, periods of economic turbulence—such as those triggered by global shocks or domestic disruptions—have disrupted traditional employment patterns, altering income distribution trends. Additionally, policy frameworks that influence labor rights, minimum wage regulations, and unionization have played a role in shaping how income gains are distributed across different segments of the workforce. These factors together suggest that the decline in wage inequality is not solely market-driven but also shaped by institutional choices that reflect underlying power structures in the economy.
— news from WID – World Inequality Database
— News Original —
The recent compression of US wage inequality: tightness, turbulence, and power-biased policy WID – World Inequality Database