Disaggregating the Effect of the Business Cycle on the Distribution of Income
Abstract
This paper disaggregates total household income into a complete set of components and studies the comparative cyclicality of these components. The cyclical responsiveness of total household income, wages, hours of work and total labor market income of heads and wives, and transfer income is compared across income, race, sex, and age groups. This provides a picture of the channels by which economic cyclicality produces income change. Significant differences in elasticities are found to exist both between different income components and between different population groups for the same components. The narrowing income distribution in times of high growth occurs primarily because of large elasticities on head's labor market income among the poor. Both wages and hours show evidence of cyclicality. The labor market earnings of women--both wives and household heads--are far less responsive to growth. Cyclicality in transfer income varies enormously between population groups and by type of transfer. Copyright 1989 by The London School of Economics and Political Science.Download Info
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Bibliographic Info
Article provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 56 (1989)
Issue (Month): 222 (May)
Pages: 141-63
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Related research
Keywords:Other versions of this item:
- Rebecca M. Blank, 1987. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," NBER Working Papers 2397, National Bureau of Economic Research, Inc.
- Rebecca Blank, 1985. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," Working Papers 569, Princeton University, Department of Economics, Industrial Relations Section..
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
- Michael Ransom, 1982. "Estimating Family Labor Supply Models Under Quantity Constraints," Working Papers 530, Princeton University, Department of Economics, Industrial Relations Section..
- Charles M. Beach, 1974.
"Cyclical Sensitivity of Aggregate Income Inequality,"
Working Papers
162, Queen's University, Department of Economics.
- Beach, Charles M, 1977. "Cyclical Sensitivity of Aggregate Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 56-66, February.
- Bils, Mark J, 1985. "Real Wages over the Business Cycle: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 666-89, August.
- Rebecca Blank, 1985.
"Disaggregating the Effect of the Business Cycle on the Distribution of Income,"
Working Papers
569, Princeton University, Department of Economics, Industrial Relations Section..
- Blank, Rebecca M, 1989. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," Economica, London School of Economics and Political Science, vol. 56(222), pages 141-63, May.
- Rebecca M. Blank, 1987. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," NBER Working Papers 2397, National Bureau of Economic Research, Inc.
- Mary Jo Bane & David T. Ellwood, 1983. "Slipping into and out of Poverty: The Dynamics of Spells," NBER Working Papers 1199, National Bureau of Economic Research, Inc.
- Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
- Hirsch, Barry T, 1980. "Poverty and Economic Growth: Has Trickle Down Petered Out?," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 151-58, January.
- repec:fth:prinin:150 is not listed on IDEAS
- Rebecca M. Blank & Alan S. Blinder, 1985. "Macroeconomics, Income Distribution, and Poverty," NBER Working Papers 1567, National Bureau of Economic Research, Inc.
- Thornton, James R & Agnello, Richard J & Link, Charles R, 1978. "Poverty and Economic Growth: Trickle Down Peters Out," Economic Inquiry, Western Economic Association International, vol. 16(3), pages 385-94, July.
- Altonji, Joseph & Ashenfelter, Orley, 1980. "Wage Movements and the Labour Market Equilibrium Hypothesis," Economica, London School of Economics and Political Science, vol. 47(187), pages 217-45, August.
- Geary, Patrick T & Kennan, John, 1982. "The Employment-Real Wage Relationship: An International Study," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 854-71, August.
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