Men in their 30s lag behind their fathers in pay

THE WALL STREET JOURNAL ^ | May 26, 2007 | Greg Ip

[ConservativeStatement]

American men in their 30s today are worse off financially than their fathers' generation, a reversal from just a decade ago, when sons generally were better off than their fathers, a new study finds.

The study, the first in a series on economic mobility undertaken by several prominent think tanks, also says the typical American family's income has lagged far behind productivity growth since 2000, a departure from most of the post-World War II period.

The findings suggest "the up escalator that has historically ensured that each generation would do better than the last may not be working very well," says the study, which was scheduled for release Friday.

The study was written principally by John Morton of the Pew Charitable Trusts, which is leading the series, called the Economic Mobility Project, and Isabel Sawhill of the Brookings Institution. Others participating are the Heritage Foundation, American Enterprise Institute and the Urban Institute.

[ConservativeStatement]

What a terrible, sexist, bigoted and homophobic response by the woman at the Brookings. Is she labeling men as lazy?

[Texas_Jarhead]

"The report also found that between 1947 and 1974, productivity, or output per hour, and median family income, adjusted for inflation, both roughly doubled. Between 1974 and 2000, productivity rose 56 percent while income rose 29 percent. Between 2000 and 2005, productivity rose 16 percent while median income fell 2 percent, challenging "the notion that a rising tide will lift all boats," the report says."

[the invisib1e hand]

men in their thirties are lazy, from what i've seen (speaking as a man in his forties).

I've watched 'em sit around all day and talk about "survivor" and "american idol" as though such things...matter.

***

A man entertained is a man emasculated. (you heard it here first).

[alice_in_bubbaland]

Not my future son in law...graduated last week Suma Cum Laude, starting at 80K+ next week. A real go getter!

LOL! I call him "The Donald"!

[AuntB]

And on top of it, everyone in that age group seems to have a student loan to pay off.

More and more facts are coming out just how the middle class is taking a hit, for various reasons.

[David_G_Burnet]

Dude ! Where's my bong?

[babygene]

I don’t know... I did much better than my dad, but then, I didn’t live through the great depression like my dad did. Somehow I think they didn’t factor that in.

[avenir]

One generation works hard and struggles to succeed, succeeds, then proceeds to ruin the next generation(s) through spoiling: “We want our kids to have it better than us.”

So much expectation of a “better” life is built on mollycoddling. Real struggle is required for a person to grow up soundly.

[Popman]

In 2004, the median income for a man in his 30s, which is a good predictor of his lifetime earnings, was $35,010, the study says, 12 percent less than for men in their 30s in 1974 — their fathers' generation — adjusted for inflation.

Two things come to mind.

1. The generation they are comparing this generation earned their money during the 80's. The most prolific longest economic boom in generations

2. They are comparing mens income rather than household income. With the advent of the working mother, dad is not available to make as much money as he possibly could, picking up household, child rearing duties.

[raybbr]

ping for later

[Gritty]

Bill Beach of the Heritage Foundation said increased immigration also could have pulled down median wages, as most immigrants at first earn less than native-born workers

Well, it was the last sentence, but at lest they got it in.

With 12-36 million illegal aliens diluting the workforce and undercutting wages and increasing the costs of those native working Americans who pay taxes, it is no surprise American citizens - especially on the lower rungs and in the manual trades - are either losing their jobs or working for much less than they used to.

For example, meat cutters in beef packing plants earned over twice as much 25 years ago than they do today, not adjusted or inflation. Now the meat packing industry is full of illegals making $9.50 and hour instead of Americans making a good living at the old $21 an hour.

Sweet deal for the packers, but a bummer for an American male trying to raise a family.

[altura]

I don’t believe that story for a minute.

All the 30 somethings I know live in McMansions, eat out almost all the time, own myriads of all the latest gadgets, think a 5 year old car is an antique and so on.

I think that’s great, but it’s certainly not how I lived when I was in my thirties.

That whole thing is a bunch of BS.

[conservatism_IS_compassion]

In 2004, the median income for a man in his 30s, which is a good predictor of his lifetime earnings, was $35,010, the study says, 12 percent less than for men in their 30s in 1974 — their fathers' generation — adjusted for inflation.

The headline talks about fathers and sons, but the "median income for a man in his 30s" sampled 30 years ago and today is not necessarily exactly the same sample. How many illegal immigrants who weren't qualified by background to immigrate legally are in the sample?

The other issue is whether inflation has been overestimated.

[Reeses]

Why doesn't Pew report how much lower total taxes were 30 years ago? If someone tax deferred much of their income into a 401k and is now paying current tax rates on it, was it a smart move?

30 years ago nobody could afford a home supercomputer, cell phone, flat big screen color TV with 200 channels, internet access, cars with airbags, GPS navigation, or get treatments for many diseases. Life expectancy was shorter. Due to technology advances, many times a byproduct of military research spending, the quality of life is better now.

[Ogie Oglethorpe]

Ping to the Xer list...

[BGHater]

All that is debt, they don’t own one thing.

[calcowgirl]

Sawhill said several factors could explain the divergence: a growing share of income going to the highest-paid workers, or to profits; an increased share of labor compensation going toward benefits such as health care; or a decline in the number of wage earners, or hours worked, in the typical family.

Gee... how could the WSJ have missed this one? - Businesses supplementing work force with a neverending flow of cheap labor in the form of illegal immigrants, driving competitive wage rates down.

[rockrr]

I don’t know how they factored their conclusions.

My dad was a kid in the depression and, like most, was dirt poor. He survived WWII and went to college. After a couple of introductory jobs he went to work for Boeing and in 33 years rose very close to the top.

I inherited his work ethic, but not his luck (and definitely not his judgment with women!). Two disastrous divorces ruined me for many years. I’ll have to work another forty years to catch up with him ;’}

[annelizly]

I agree with you.

My 38 year old husband is an electrician. doing it for 20 years and the state keeps making the exams for licensing harder and harder each year. They make the regulations more and more difficult. changing yearly and unless your college educated or don’t have a life outside of work so that you can spend all your time memorizing a text book that constantly changes, you can’t get ahead.

Of course, add on to that the way that the government now reams the small business man , overhead sky rocketing and pay dropping because of the lack of work where is the incentive to shoot for the brass ring? the brass ring isn’t looking too good anymore.

[Wheee The People]

Irrelevant study...women now take up much of the work force and are doing MUCH better than their mothers (at least in monetary value)