Those distributional differences have, however, persisted and have if anything widened further. Despite having fallen by almost 10% since the crisis, real wages among the top 10% are still over 20% higher than in 1997. But wages for the bottom 20% have fallen by almost 20% since 2007 and are essentially back to where they were in 1997. These polarising forces in the labour market are also evident across industries (Chart 17). BIS central bankers’ speeches  5  Between 2001 and 2007, median annual wage growth across industries was 4% with a standard deviation of 1 percentage point. During 2014, average real wage growth has averaged 1% with a standard deviation of 2.5 percentage points (Chart 18). Wage dispersion has risen markedly. In some sectors wages are growing faster than before the crisis, while in others they are falling in both real and nominal terms. So while strong employment demand has helped sustain wages among the highly-skilled, it has not worked the same magic for the lower skilled. That begs the question – why? The most likely explanation is that rising demand has been more than offset by the rise in the supply of labour for these services. Several factors are likely to have been at play. First, displaced mid-skilled workers may have sought jobs for which they are over-qualified in order to stay in employment. In other words, they have moved down the skill distribution, placing downward pressure on wages. The crisis is likely to have reinforced these trends.
Caleb M Fundanga: Innovation for leadership excellency Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Eastern and Southern African Management Institute (ESAMI) launch of MBA Alumni Zambia Chapter, Lusaka, 12 February 2010. *  *  *  The Eastern and Southern African Management Institute (ESAMI) Director General, Prof. Bonnard Mwape; The President, ESAMI MBA Alumni Zambia Chapter, Mr. Christopher Mulenga; The Ecobank Zambia Limited Managing Director, Mrs Charity Lumpa; ESAMI Alumni; Distinguished Invited Guests; Members of the Press; Ladies and Gentlemen. It is a great pleasure for me to officiate at the launch of the ESAMI MBA Alumni Zambia Chapter. I wish to take this opportunity to welcome Prof. Bonnard Mwape and other ESAMI staff that have travelled from Arusha to come and witness this important occasion. I am particularly delighted to be part of this launch because my first interaction with the ESAMI MBA alumni members was during the recent summer school event held in Arusha, Tanzania, where I was invited to present a paper on “The Effects of the Global Economic Crisis on Zambia”. Indeed my memories of that lively interaction are still very fresh and that is why I graciously accepted to officiate at this function when I received the invitation from the President of the association. Ladies and Gentlemen allow me to congratulate the President and his team for this excellent initiative of bringing together individuals with a common academic background under the Alumni umbrella.