How Reliance on High-Income Consumers Increases Wage Inequality in the U.S. Economy

Nathan Wilmers, Harvard University

Many businesses compete to attract dollars from the most affluent. But an innovative study finds that industries catering more to the wealthy have higher wage gaps, raising the prospect of a self-reinforcing cycle of inequality propelling wider pay gaps in the future.

> A new Key Findings brief by Wilmers summarizes theoretical reasoning and empirical findings from his just-released research. On July 25, this study was featured at the Washington Post's Wonkblog in "The Inequality Snowball," posted by Lydia DePillis.

> As a PhD candidate in Sociology at Harvard University who specializes in economic sociology, Nathan Wilmers studies the causes and consequences of rising income inequality in the United States. Before graduate school, he worked at the National Labor Relations Board and as a research analyst at the American Federation of Labor and Congress of Industrial Organizations.

July 2014