Methodology

To calculate where a person falls in the wage distribution, we use annualized hourly wages to create ventile cut-offs (5th percentile, 10th percentile, 15th percentile, etc.) within the wage distribution. Based on the user's salary, we find a percentile by linearly extrapolating between the closest ventile cut-offs. Since we annualize wages (multiplying hourly wages by 2,080), part-time workers will find the most appropriate comparison by inputting salary as if they are full time.

To predict wages if overall economic inequality had not increased since 1979 (i.e., if wages had kept up with productivity, as they did in the three decades after World War II), we apply productivity growth to 1979 wage ventiles.

For more information on EPI’s data methods, see Methodology for measuring wages and benefits.

Sources: Wages from Bureau of Labor Statistics (BLS) Current Population Survey Outgoing Rotation Group (1979 and 2017). Net productivity data from EPI analysis of BLS Labor Productivity and Costs data.

Last updated March 1, 2018