What is paycheck paralysis?

Between 1979 and 2004, the median weekly earnings of a man between 35 and 44 fell 7.8 percent after adjusting for inflation, according to data from the Bureau of Labor Statistics. For men between 45 and 54, their median weekly earnings fell 2.3 percent.

A big reason for that decline, said Mark Zandi, chief economist of Moody's www.Economy.com, is the decline in manufacturing jobs due to global competition.

Women during the same 25-year period fared considerably better. The median weekly earnings of female workers between 35 and 44 rose 20 percent, while they rose 25 percent for those between 45 and 54.

Those increases are likely related to several factors, Zandi said: There are 25 million more working women today than in 1979, and their skills, educational attainment and tenure have all increased.  Meanwhile, wage discrimination has been reduced.  In 1979, for example, women between 35 and 44 earned about 58 cents for every dollar a male peer earned. Today, they earn about 76 cents.

At the household level, there has been a 30 percent rise in median income since 1967, according to data from the Census Bureau.  But in the past few years, median household income has remained flat, and real median earnings have actually fallen for both men and women.

Source: Jeanne Sahadi www.CNNMoney.com January 23, 2006