Decline of collective bargaining worsens wage and benefit standards for all workers | Economic Policy Institute

Posted on September 24, 2012 by

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As union membership has declined, wage inequality has grown

In his new report, Unions, inequality, and faltering middle-class wages, EPI President Lawrence Mishel finds that as union membership has declined, wages for middle-class workers have suffered. Declining unionization was responsible for roughly a third of the growth of wage inequality among men from 1973 to 2007 and about twenty percent of the wage inequality among women. Mishel noted that “it’s important to take into account the impact of collective bargaining on wage and benefit standards for all workers.”

A lost decade of income growth for working-age families

This week’s Economic Snapshot charts the median income of working-age families from 1975 to 2010. It shows that the poor labor market performance of the last decade prevented their income from recovering its 2000 peak during the recovery and expansion following the 2001 recession. The median income of these families then fell precipitously following the onset of the Great Recession, declining more than 7 percent ($4,926) between 2007 and 2010.

Decline of collective bargaining worsens wage and benefit standards for all workers | Economic Policy Institute.

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Posted in: Economics