A new report published in late October found that Millennials today are making 20% less than the Baby Boom generation did when its members were their age, even though fewer Boomers had attained a college education.
The median income of current 18-to-34-year-olds is lower than the same age group in the 1980s, according to the study conducted by New America, a nonpartisan nonprofit organization.
“Millennials are going to be on a completely lower trajectory than previous generations,” Reid Cramer, director of the Millennials Initiative at New America, said in the report, titled “The Emerging Millennial Wealth Gap.”
This gap is despite Millennials being better educated than there Boomer and Generation X counterparts, with almost 40% of millennials having at least a Bachelors’ education compared to 25% and 30% of Boomers and Gen X at the same age, respectively, according to Pew Research Center.
The report credited the fall in income to the Great Recession creating a smaller job market for graduating students, higher college tuition leading to more debt and the rising popularity of contracting gigs that have less of a guarantee of hours, pay and benefits.
Mr. Cramer adds that not everyone recovered from the last recession’s effects.
“Even as the economy steadily added back jobs lost, the protracted recovery was experienced unevenly, with well-off households doing better at the expense of others,” Mr. Cramer writes.
“Income is stagnant, relative to the past, it’s been more volatile relative to the past — that combination leads people to have a lot less and be really suspect about making commitments to the future,” he added.
Copyright © 2020 The Washington Times, LLC.