Journal Article

Compression in the Wage Distribution During the Post-Covid-19 Labor Market


Abstract: The COVID-19 pandemic caused changes for business across all industries, though the effects were unequal. As lockdown restrictions aimed at mitigating the spread of COVID-19 were relaxed, nominal wage growth rose sharply in leisure and hospitality and in trade and transportation, the two industries with the highest concentration of low-wage workers. In fact, wage growth was most pronounced for workers in the bottom 50 percent of the wage distribution who changed jobs into one of these industries.

https://doi.org/10.26509/frbc-ec-202506

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2025-04-21

Volume: 2025

Issue: 06

Pages: 9