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Living standards trends in the new economy era: what can we learn?

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  • Lawrence Mishel

    (Economic Policy Institute, Washington D.C.)

Abstract

This article reviews wage trends in the USA during the 1990s. Positive findings include rising living standards and a narrowing of the pronounced income inequality, particularly at the bottom. Explanations discussed include sustained low unemployment, ‘new economy effects', government policy (e.g. minimum-wage increases), and the limited role of the stock market boom. Problems are identified, such as the increased (paid) work effort required. The article closes with an evaluation of the likely consequences of the recent downturn.

Suggested Citation

  • Lawrence Mishel, 2001. "Living standards trends in the new economy era: what can we learn?," Transfer: European Review of Labour and Research, , vol. 7(3), pages 406-421, August.
    • Handle: RePEc:sae:treure:v:7:y:2001:i:3:p:406-421
    DOI: 10.1177/102425890100700306
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