The US economy has strengthened considerably in recent years, presenting an opportunity to address the 40-year stagnation in incomes for the middle class. This column provides historical and international context for the key factors affecting middle-class incomes: productivity growth, labour force participation, and income inequality. It also outlines President Obama’s approach to economic policies – what he terms “middle-class economics” – which is designed to improve all three.
Jason Furman, 20 February 2015
Michael Boehm, 08 February 2014
Employment in traditional middle-class jobs has fallen sharply over the last few decades. At the same time, middle-class wages have been stagnant. This column reviews recent research on job polarisation and presents a new study that explicitly links job polarisation with the changes in workers' wages. Job polarisation has a substantial negative effect on middle-skill workers.
Shimelse Ali, Uri Dadush, 02 June 2012
According to the broadest measure, anyone who is not poor is part of the middle class – that could mean that anyone living on more than $2 a day. This column suggests a more sensible measure: anyone who owns a car. Based on this measure, the global middle class looks quite different.