It's the first time during an economic recovery that began in mid-2009 that the bottom half of earners are benefiting more than the top half — in fact, about twice as much.
The recent jump in paychecks has come with an unusual characteristic, as workers at the lower end of the pay scale are getting the greater benefit.
"Our findings suggest scope for continued firm overall wage growth, given that lower income wage growth is more cyclical and persistent, and given potential room for further acceleration in high income wages," Goldman economist David Choi said in a research note. On a broader level, the current labor market dynamics were missing for most of the recovery and are pointing to the kind of inflation that policymakers at the Federal Reserve have been waiting for. While wage growth in higher earners tends to be tied to stronger corporate profits, the benefits to lower workers tend to arise as the labor market gets tighter, according to the Goldman analysis.
One danger is that higher wages could start to eat into corporate profits, which have doubled since the financial crisis.
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