CPI misrepresents wage growth for the bottom 40%

Growth of household wages versus household wages after paying rent, bottom 40% of renter households by household wages

CPI-adjusted household wages show 17.9% growth since 1960. After-rent household wages down 12.5% since 1960, after bottoming out in 2011 at -30%.
Total household wage income is adjusted by CPI. Household wage income less rent is adjusted by CPI less shelter inflation. Only renter households making at least 90% of income from wages are included. Growth rates are calculated separately for households with different numbers of wage-earners and then combined as a weighted average.
Chart: Brandon Istenes / Rent & RentierSource: IPUMS USACreated with Datawrapper