United Slates. That a large proportion of unskilled workers in the United States was paid wages, even in 1921, far too low for decent self-support is a fact confirmed by many wage investi- gations and well known even to those only slightly familiar with industrial conditions. Before the era of unprecedentedly high prices caused by the World War, it was the consensus of expert opinion that a weekly wage of $8, or more, was necessary under urban conditions for the maintenance of a self-supporting woman in simple decency and working efficiency, and that a man with a wife and three children needed $15 to $20 weekly. Yet a study made in 1914 of women's wages in the United States led to the conclusion that 75% of female wage-earners received less than $8 weekly, 50% less than $6 and 15% less than $4; and that the incomes from these wages were further reduced approximately 20% through lost time and unemployment. The pay of un- skilled male workers was at a correspondingly low level. Frank H. Streightoff, in his discussion of American standards of living, estimated that at least 6,000,000 adult males, married as well as single, received less than $600 a year, or $12 a week. More intensive investigations bore out these figures. The U.S. Immigration Commission in 1907-10 studied many typical households of both native- and foreign-born, in 16 industries, and found that more than half the male heads of families earned less than $500 a year, and nearly two-thirds less than $600. The New York State Factory Investigating Commission examined the pay-rolls of over 2,000 stores and factories during the autumn, winter and spring of 1913-4, a year which may be regarded as normal, and found that of 57,000 women and girls, approximately 34,000, or 60%, earned less than $8 in a typical week. Of 14,000 married men, 7,000 earned less than $15. The causes of these low wages were: the lack of strong labour or- ganizations and collective bargaining among this group of wage- earners; the belief of unskilled women wage-earners that their work was temporary;- and the competition of married women who were only partially self-supporting; also a failure on the part of employers to recognize a relation between wages and productivity. In the United States, until the outbreak of the World War, the situation was further complicated by the stream of immigration, which furnished an abundant supply of cheap labour and provided still another barrier, in the shape of diver- gent language and customs, in the way of union organization.
During the war the wage level was appreciably raised, but owing to the great rise in prices that accompanied the change it is doubtful whether real wages were materially increased, except perhaps in a few war industries and in certain occupations covered by especially liberal Government wage awards. The aver- age rate of wages failed to keep pace with the rising cost of living. Between Nov. 1918 and Jan. 1919 a study by the New York Industrial Commission of the earnings of 32,000 women in the same industries which had been covered by the Factory Investiga- ting Commission in 1913-4 indicated that 60% of those in fac- tories and 61 % of those in stores received less than $14 a week, the equivalent of $8 in 1913. The average weekly wage of both sexes in many representative New York factories was $24.83 in Sept. 1919, while in eight large industries for which data were collected by the National Industrial Conference Board, the average weekly wage for male workers was $24.24 in Sept. 1918 and $23.37 in March 1919. In the skilled trades the effect of trade unionism was to increase wage rates: union minimum rates as provided in agreements with employers rose above the 1913 rate 99% for hourly rates and 89% for full-time weekly rates, exclusive of overtime, paid for at an increased rate.
The demand for increased wages has been the most frequent cause of strikes since 1915, as was to be expected in a time of steadily advancing living costs. Many of the strikes or threatened strikes were settled by Government agency. Considerations which influenced the arbiters were: the concept of a minimum living wage; increases in the cost of living; the desire for stand- ardization, both within a given industry and in a given terri- tory; increase in productive efficiency; and the effect of overtime work in increasing weekly wages. The National 'War Labor Board created a Cost of Living Section associated with the
Bureau of Labor Statistics. The minimum requirement for an average American family of five members was found to be, for New York City, in June 1918, $1,350 to $1,400; in Dec. 1918, $1,500. Therefore, if the eight-hour day were observed, 55-60 cents an hour would be the lowest which might properly be received by the breadwinner. It was, however, expected that overtime would be worked, and lower rates were set, 40-45 cents an hour.
Before the war there were inequalities in wage rates in different parts of the country and between union and non-union workers; the tendency of war-time adjustments was to establish standards. But the rates of pay of the unskilled rose more rapidly than those of the skilled. Wages of unorganized common labourers increased 100 to 200%. These men had formerly been paid less than enough to maintain an " American standard of living." During the war there was such a demand for their services that wages rose as employers bid against each other. In certain cases the Government agencies fixed arbitrary standards to prevent a flow of labour back and forth between localities and between establishments. There were great differences in wage increases gained by skilled workers. The least increases were in the build- ing trades, which before the war had been among the best-paid employments; but men engaged in shipbuilding received in- creases greater than the average for the trade. The U.S. Bureau of Labor Statistics estimated that the cost of the working-class standard of living doubled between 1913 and 1920. The cost of food increased 118%, as calculated from the prices of 22 food articles reported to the Bureau. The accompanying table shows the increase per cent for both cost of living and wages. This wage index is computed by the present writer on the studies of wages in 12 important industries, made by the U.S. Bureau of Labor Statistics. The index number computed is a simple, unweighted, arithmetical average of average full-time wages, with 1913 used as a basis. Increases in the trades studied were as follows: bakery trades, 1913 $18.14, I9 2 $41-28; boot and shoe, 1913 $17. 28^ i920$29-32; building trades, 1913 $24.33, *92 $44-i8; cotton manufacturing, 1913 $10.17, 192 $29.05; iron and steel, 1913 $28.47, 1920 $68.84; metal trades, 1913 $21.62, 1920 $42.37; mill work, 1913 $14.48, 1920 $41.19; printing, 1913 $19.56, 1920 $35.89; silk manufacturing, 1913 $12.39, 1919 $21.99; woollen, 1913 $10.14, 19 20 $35-i8; farm labour, without board, 1913 $7.58, 1920 $16.24; railroads, 1913 $21.94, Jan. 1920 $25.91.
Cost of Living
Wages ,
1913 1914
1915
1916
IOI7
100
103-0 107-4
II3-3 140-5
loo
100-2
103-3 H7-5 J 34'4
1918 1919 1920
165-8
190-2
208-2
157-5 185-5 206-4
The increase of the cost of living was in advance of the in- crease of wages for the whole period from 1913 through 1919, except possibly during 1916. The discrepancy was greatest in 1918. The purchasing power of wages, measured by the cost of food, fell more in 1917 than in any year since 1890. The drop was one of 17-7% in the purchasing power of 1913. From the middle of 1008 to the middle of 1921 the purchasing power of wages continued to be less than in the period 1890-1907. The purchasing power of wages (" real wages ") was greatest in 1896 and in 1900. Total " real income," however, was not necessarily greatest in these two years, due to changes in the volume of employment. It appears that the prices of labour are influenced by the changes in business conditions, but to a less degree than the prices of commodities. In general, the average wage declined after 1893, recovered in 1896, and dropped again for the years 1897 and 1808. In 1899 the wage began to advance, halted in 1904, and dropped slightly after 1007; beginning with 1909 the upward course was resumed, with a slight drop in 1914. This upward movement continued to 1920, and was especially rapid after 1916. In the various industries there were differences in the degree of the movement of wages. The fluctuations in the
