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"Real Average Hourly Earnings" is already an adjusted metric to make sure that it's not skewed to the top earners (hence why it's called "Real Average" and not
by reissbaker 3y ago
"Real Average Hourly Earnings" is already an adjusted metric to make sure that it's not skewed to the top earners (hence why it's called "Real Average" and not just "Average"). In the linked post you'll note the following explanation of what "Real Hourly Average Earnings" means: "Data relate[d] to production employees in mining and logging and manufacturing, construction employees in construction, and nonsupervisory employees in the service-providing industries," which apparently covers roughly 80% of private sector jobs in the US.
- mediaman 3y agoYou are right that this metric excludes things like capital gains income, and covers just hourly earnings. “Real”, however, refers to it being inflation adjusted, not an exclusion of high earners (who are excluded anyway because of the hourly earnings metric).