Incomes of typical households in Worcester have barely grown even though the state’s median wage has grown significantly over the last 37 years, according to a new study by MassBudget.
The study by the non-partisan public policy research organization found that since 1979, the median income in Worcester grew only seven percent after adjusting for inflation. This is in contrast to Massachusetts income per household overall increasing 69 percent, with the gains heavily concentrated among the highest-income households, according to a release announcing the results of the study. According to the study, if Worcester grew at the same rate as overall income, then the median household income in Worcester would be $70,000 instead of $45,000.
The study found this lack of income growth among other Gateway Cities as well. A Gateway City is a state designation that includes Worcester and 25 other medium-sized cities in the Commonwealth with lower than average incomes and rates of educational attainment of bachelor’s degrees.
The study used census data to review income growth and surmised that wage growth did not follow productivity growth, which has been on the rise. The group recommends raising the minimum wage to the proposed $11 an hour by 2017, as this increased productivity is not reflected in the state’s current wage floor. Increasing education in Gateway Cities was also cited as a means to increase the median wage for the communities.
