Apr 4, 2014 - Center on Budget and Policy Priorities. 820 First Street NE, Suite 460 ... Since the start of the recovery
An Affiliate of the Center on Budget and Policy Priorities 820 First Street NE, Suite 460 Washington, DC 20002 (202) 408-1080 Fax (202) 408-8173 www.dcfpi.org Updated April 4, 2014
Trends in DC Wages Wages earned by the lowest-wage DC workers have barely changed over the past 30 years, while wages for middle-wage workers have increased modestly and wages for top earners have increased substantially (see Figure 1 and Table 1). Low-wage workers: These are defined here as the 20th percentile wage — meaning 20 percent of workers earn this amount or less. Low-wage working DC residents earned $12.31 an hour in 2012, which would provide an annual income of roughly $25,600 for a full-time worker. This was 6 percent higher, after adjusting for inflation, than hourly earnings for this group in 1979.
Figure 1 Wage Trends in the District of Columbia th 20 , 50th, and 80th Percentile Wages 1979-2012
Median-Wage Workers: The median wage is the mid-point for earnings, with half of workers earning less and half earning more. The median wage among DC residents equaled $24.01 an hour in 2012, which is 36 percent higher than in 1979, after adjusting for inflation. This reflects an average annual wage increase of 1 percent beyond inflation. High-Wage Workers: These are defined here as the 80th percentile wage. High-wage earning DC residents earned $43.12 an hour in 2012. This was 49 percent higher, after adjusting for inflation, than hourly earnings for this group in 1979.
Table 1
DC WAGE TRENDS Year 1979 1980 1985 1990 1995 2000 2005 2010 2012
Low Wage (20th Percentile) $11.61 $10.78 $10.29 $10.56 $10.56 $11.91 $12.13 $13.70 $12.31
Median Wage (50th Percentile) $17.70 $16.47 $16.55 $17.09 $17.74 $19.85 $21.34 $23.86 $24.01
High Wage (80th Percentile) $28.87 $26.78 $27.90 $29.27 $31.62 $32.24 $38.82 $42.32 $43.12
Wages in the Wake of the Recession Wages fell for many groups of DC residents in the recession. Since the start of the recovery, wages have grown unevenly. While the highest-earning DC residents have fully recovered and now earn more than before the recession started, low-wage workers, workers of color, and those without advanced degrees still earn less today than before the start of the recession. Figure 2 African American and Hispanic Residents Have Had Little Wage Growth — Median Hourly Wage in DC by Race
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For African-American residents, wages grew just 2 percent between 2008 and 2012, a difference of just $0.38 an hour. Wages for Hispanic residents barely grew at all. Since 2008, wages for Hispanic residents grew less than 1 percent, a difference of about $0.08 an hour. Yet the typical wage for white workers rose about 9 percent. Residents without college degrees saw their wages fall in the wake of the recession. The typical wage for a resident with a high school diploma fell from about $15 per hour in 2008 to about $12 per hour in 2012. Even those with some college, but without a Bachelor's degree saw wages decline from about $17 to $16 an hour. Meanwhile, wages for those with college degrees grew from $30 to $31 an hour.
Wage Resources Center for Budget and Policy Priorities & the Economic Policy Institute, “Falling Short: The District’s Economic Recovery is Leaving Several Groups Behind,” http://www.dcfpi.org/falling-short-thedistricts-economic-recovery-is-leaving-severalgroups-behind
Figure 3 Only the Most Educated Residents Have Had Wage Growth — Median Hourly Wage in DC by Education
DC Fiscal Policy Institute, “DC’s Two Economies: Many Residents are Falling Behind,” http://www.dcfpi.org/dc%e2%80%99s-twoeconomies-many-residents-are-falling-behind
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