Wage Inequality: The U.S. Housing Industry

Written by: Kelly L. Hunter

Wage inequality is an issue that has affected every industry in the United States. The housing industry is no stranger to such issues. In fact, the housing industry has been dealing with wage inequality for over a decade and quite possibly longer than that. There are many factors that have caused wage inequality in the U.S. housing industry; immigration is one of those factors. The need for more productive labor is another factor. Technology has begun to replace hands-on labor and this is beginning to worry many workers and contractors in the housing industry. Decreases in pension and retirement plans are also a major concern when it comes to wage inequality. “Old- style pension plans from employers that promised workers a fixed sum each month in their retirement years are rapidly disappearing in favor of 401(k)-style savings plans that require active worker involvement and place the risk of financial loss on the individual” (Trigaux. 2006. ¶ 17).
Florida is one of the many states where workers are feeling the affects of wage inequality the most. This region was once known for its vast selection of affordable housing and even that is now a distant memory. Other set backs such as the rise in gasoline, an increase in property taxes and homeowner’s insurance, as well as soaring electric bills, have many workers on the edge of their seats in a panic. “In The State of Working America, the economist authors attribute the rising inequality in paychecks to a series of setbacks for lower-paid workers: The lack of movement in improving the $5.15-per-hour federal minimum wage” (Trigaux. 2006. ¶ 18). Healthcare benefits are also sky-rocketing; thus causing an increase of deductions from paychecks for those who currently have benefits and denying the ability to afford them for those who do not.
Education is also becoming an issue as well as a factor in wage inequality and is not necessarily a guarantee of prosperity or job security. Individuals with less schooling in areas of higher education really bear the brunt of our current economic crisis. “Blue-collar workers made up 43.4 percent of the long-term unemployed in 1989. Last year, their share was 29 percent and White-collar unemployed for the long-term rose in that period from 31 to 42 percent” (Trigaux. 2006. ¶ 19). Unemployment amongst individuals who possess at least a minimum of a four year college degree is said to be relatively low. However, individual’s who only have a high school diploma may find that they have a very difficult time finding a decent wage or any job at all during these current economic struggles. “While the time-pressed BlackBerry crowd is connected to the workplace around the clock, workers with less education are hard-pressed to find good jobs” (Trigaux. 2006.).
With many homeowners’ losing their homes and rental properties to foreclosure, the housing market is experiencing troubling times that do not seem to be going away anytime soon. With few people purchasing homes, builders are finding it hard to secure contracts. Relatively no one is investing in real estate at this time, let alone building new homes. In Charlotte County, Florida alone, there are many Spec homes that have sat unfinished for well over four years now. Contractors and builders are refusing to invest anymore of their money in homes that are not going to be sold. The question is, how long can these homes sit unfinished and unprotected before the framework and other elements begin to weather beyond repair causing further financial loss?
“We are in a watershed time in our economy, where technology has transformed how we work (and) globalization is changing the rules of the game for low-skilled, semiskilled workers,” (Trigaux. 2006. ¶ 23). The demand for more efficient productivity has increased the demand for newer technologies which in some cases bares a burden on those who do not possess the knowledge or experience needed to operate this more advanced equipment. In this industry, the more you know will most likely increase your chance of earning a higher paying wage. Immigration has caused a rift in wages due to the fact that many are willing to work longer hours for less pay. New policies will need to be put into place in order to stop this kind of inequality. Wages should reflect the work being performed and unfair as it is, it’s definitely a reality. “Human beings must have access to the goods and services necessary to support and sustain their dignity; for workers that means a wage adequate to purchase those goods and services” (Figart. 2001. ¶ 2).
Our economy has been spiraling out of control for quite some time and everyone from the rich to the poor has been feeling its strains. In order to fix the many issues that the housing industry has been struggling with, policy makers are going to have to make some much needed changes. Wage inequality has been going on for so long that it is going to take a great deal of work in order to get things back on track. Immigration, technology, education, and a failing economy are amongst the most significant factors contributing to this industry’s downfall. Only time will tell if Washington can get us out of this mess.



Reference(s)

Figart, D.M. “Ethical foundations of the contemporary living wage movement”. International Journal of Social Economics. Vol 28. No 10/11/12. (2001). Retrieved January 25, 2009. http://www.emerald-library.com/ft

Trigaux, R. “Wheel churns out new reality; (North Pinellas Edition)”. Times Publishing Co. (2006). P. 1D. Retrieved January 25, 2009. http://swtuopproxy.museglobal.com