detroit

July 12, 2016 Comments Off on Middle-, Upper-Income Households Declining in Detroit Views: 354 California News, Michigan, Midwest, National News

Middle-, Upper-Income Households Declining in Detroit

The lingering effects of the recession, flatter compensation in labor contracts and two-tier autoworker wage structures have led to a decline in middle- and upper-income households, according to Jonathan Silberman, professor of economics at Oakland University in Rochester Hills, MI.

Plugging in data from a Pew Research Center report, Silberman made a correlation between manufacturing sector declines and the decline of middle- and upper-income households.
Metro Detroit experienced a 6.9% increase to 28.1% of all households in lower-income homes from 2000-2014, while middle-income households shrank by 3.7% to 51.4%. Upper-income households fell by 3.2% to 20.5%.

Silberman pointed out that, during the same time period, the average manufacturing production worker’s hourly wage fell from $31.57 in 2004 to $22.02 in 2014. The number of manufacturing employees fell by about 50,000 in the metro.

Read More at Crain’s Detroit Business

Connect with Oakland University’s Silberman

Share on FacebookTweet about this on TwitterShare on LinkedInEmail this to someone

Tags: , , ,

Comments are closed.