The result for workers is injustice; while output per hour is up nearly 15% since the turn of the century, medium wages have only risen a little over 8%.
When focusing specifically on the labor market, it is expected a significant increase in unemployment, a reduction of medium wages, a deteriorating social protection, and a worsening of working conditions.
This last feature changed in 1954, when the system moved from one of individual accounts to a one of PAYG type, also a progressive element was introduced with low- and medium-wage workers receiving higher replacement ratios at retirement.
Because our estimates are closer to an individual's medium term average wage given their occupation, it may capture important economic forces more effectively than reported measures of income for a specific period of time.
This possibly implies that high-wage occupations display more task heterogeneity, allowing for originality and inventiveness in performing high-wage jobs, whereas for medium- and low-wage salaries tasks are more standardised around the typical worker.
For the Spanish case, López-Mayan (2010) analyses the choice between academic and vocational tracks, and she finds that there is a strong association between decreasing the dropout rate in upper secondary education and the increase of annual wage of medium vocational education qualifications.
(It's not just an issue here in New York -- nationwide, low-wage industries are growing almost three times as fast as medium- and high-wage industries).
But these are both medium-sized high-wage nations that are already developed, not gigantic low-wage nations still on the early stage of their development path.
Stephen Kagann, chief economist for Gov. George E. Pataki, said that the study painted an unjustifiably harsh picture, and that since the turnaround year of 1993, there had been across-the-board growth in the city's low-, medium- and high-wage jobs.
In 1995, Social Security replaced 43percentt of the wages of medium earning workers turning age 65 and retiring in that year; today, that retiring worker would only receive 40percentt of wages; and workers born in 1960, and retiring at age 65 in 2025 will receive only 36percentt of their wages.
