Where in the World are the DINKs?

Couples in different advanced economies face different opportunity costs when it comes to children, creating different pockets of DINKs across the globe.

News

GDP data confirmed that the UK slipped into recession in the second half of 2023. The BoE needs to reverse course quickly or else face a more severe downturn.

Industries: Discover industry-specific insights and the state of hiring in these main sectors.

We have expanded our reporting to cover Canada and the UK.

recruitonomics

Recruitonomics is a hub for data-driven research that aims to make sense of our evolving world of work.

Wage Growth Favors Low-Wage Workers 

Author: Liz Anderson
19 Jan 23

In the past two years, wage growth has been dramatic for low-wage workers, reducing inequality. Can this trend continue into 2023? 

In recent years, the economy’s low-wage workers have experienced the most robust wage gains, closing the gap between the highest and lowest quartiles and compressing the labor market. To note, these gains are nominal and do not account for the rapid pace of inflation in the past year.  

It’s not just low-wage workers who have seen strong nominal wage gains. Spurred by the so-called “Great Resignation,” job-switchers are notching impressive pay increases as well. Job switchers have dramatically outperformed job stayers in wage growth. From December 2020 to December 2022, the gap between the two widened by 1.1 percentage points.   

While distinct, these trends are not independent; workers in lower-wage positions switch jobs more frequently. For example, the quits rate for leisure and hospitality reached a series-high of 6.1% in 2021. In comparison, professional and business services peaked at 3.8%.  

Both trends were emphasized by the “tight” overall labor market and the intensified competition for talent.  

While the first quartile earners made impressive wage gains, higher earners instead gained new ways to work from the competitive market – more flexible hours and workplaces adapted for better work-life balance.  

For the first time in decades, wages are rising faster for the bottom quartile of earners. High demand, increased competition for workers, and high turnover rates are all allowing for this reversal of a decades-long trend. But can it last as labor market pressures fall?  

As the Fed continues to hike interest rates to fight inflation, the competition for workers may decrease, slowing these wage gains. So far though, the decreased demand for workers has mostly hit white-collar professions. Intense competition for workers may continue in these lower-earning professions, allowing these historic nominal gains to continue.   

Economics Writer

Sign up to receive the latest updates!

Couples in different advanced economies face different opportunity costs when it comes to children, creating different pockets of DINKs across the globe.
4 minutes
Raising kids has become increasingly expensive but not necessarily in the way that you think. Women increasingly choose career over babies – welcome to the DINK phenomenon.
4 minutes