A new middle class

In this paper, we make the case that the high-productivity digital firms are starting to generate a new middle class. It’s a virtuous circle. Consumers flock to those firms because they offer lower prices and better service. Workers migrate there from low-productivity firms because the high-productivity firms offer better wages for the same occupations—and, often, steadier hours and better benefits.

– The Creation of a New Middle Class?: A Historical and Analytic Perspective on Job and Wage Growth in the Digital Sector. [PDF]

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