Corporate America Is Suppressing Wages for Many Workers
New York, New York. February 28, 2018
Even after eight years of economic recovery and steady private-sector job growth, wages for most Americans have hardly budged. In a new study for the Brookings Institution’s Hamilton Project, we report survey results in which we find that one in five workers with a high school education or less are subject to a noncompete.
Unions used to offset employer company power to suppress wages and limit job mobility, but unions now represent only 7 percent of private sector workers, down from a peak of 35 percent in the 1950s. Combating the practices that employers use to monopsonize the labor market can lead to higher wages, more jobs and faster economic growth.