After-tax wage growth is accelerating faster among higher-income households as lower- and middle-income households trail behind, a new Bank of America Institute report shows.
Pay for higher-income households in March grew by 5.6% from a year ago, while lower- and middle-income households saw after-tax wage growth of 1% and 2%, respectively, according to David Tinsley, a senior economist at the Bank of America Institute. That’s the biggest gap recorded since the bank began tracking the data in 2015.