The wage gap shrinks

Thanks to the COVID-19 pandemic and resulting job market dynamics, the gap between America’s highest- and lowest-­paid wage and salary workers has shrunk by more than 25 percent—reversing a 40-year trend. In March a National Bureau of Economic Research study reported that wages for younger, less-educated workers at the bottom of the market increased 6 percent from January 2020 to mid-2022, while inflation eroded wage growth for median and top earners over the same period.

The wage gap was closing before 2020 as many states increased ­minimum wages, but the trajectory ­accelerated coming out of the pandemic. Pandemic-driven closures hit low-wage service workers hard, but the rebound that began in mid-2021 was also stronger for lower-wage earners.

Economists say government payouts and increased demand for workers led to higher wages for some: Before the pandemic, non-college workers often stayed in a job, assuming they couldn’t forgo a paycheck as they moved to a new one. But with rising wages, increased unemployment benefits, and household stimulus checks, workers felt empowered to switch jobs or demand higher wages as the economy reopened.

Workplace worries

A nationwide survey published in March suggests that when company ­leaders take a stand on politically contentious social issues, they might be alienating employees, who may consider them intolerant toward diverse workplace views.

Almost two-thirds of respondents in the national poll, commissioned by Alliance Defending Freedom, said that respectfully expressing religious or political viewpoints as employees would “likely or somewhat likely” carry negative consequences in the workplace. A majority of employees surveyed said they fear negative consequences even when expressing their viewpoints beyond the workplace.

At a time when workers are in high demand, almost half of respondents said they are less likely to apply for a job where the work culture is hostile to their religious or political views. The survey was conducted last October and November. —T.V.

Stopping merry-go-round subscriptions

The Federal Trade Commission on March 23 proposed a “click to cancel” rule making it easier to cancel recurring subscriptions for everything from newspapers to gym memberships. The proposal requires sellers to provide a “simple cancellation mechanism” and also to send an annual reminder to consumers enrolled in most subscription programs. The agency receives thousands of complaints each year regarding hard-to-cancel programs. —T.V.