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Inequality Of Wage Rates, Earnings And Family Income In The United States, 1975-2002

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  • Peter Gottschalk
  • Sheldon Danziger

Abstract

This paper analyzes distributional changes over the last quarter of the twentieth century. We focus on four distinct distributions: the distribution of hourly wage rates, the distribution of annual earnings of individuals, the distribution of annual earnings of families, and the distribution of total family income adjusted for family size. Both male wage rate inequality and family income inequality accelerated during the early 1980s, increased at a slower rate through the early 1990s and then stabilized at a high level through the early 2000s. The similarity in the timing of changes in these two distributions has been used as evidence that increased family income inequality primarily reflects increased inequality of wage rates. We show that other important factors were also at work. Copyright 2005 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 51 (2005)
Issue (Month): 2 (06)
Pages: 231-254

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Handle: RePEc:bla:revinw:v:51:y:2005:i:2:p:231-254

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Cited by:
  1. Lüthen, Holger & Bönke, Timm & Corneo, Giacomo, 2012. "Lifetime Earnings Inequality in Germany," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62074, Verein für Socialpolitik / German Economic Association.
  2. Burkhauser, Richard V. & Feng, Shuaizhang & Jenkins, Stephen P. & Larrimore, Jeff, 2008. "Estimating Trends in US Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring," IZA Discussion Papers 3690, Institute for the Study of Labor (IZA).
  3. Olivier Bargain & Mathias Dolls & Herwig Immervoll & Dirk Neumann & Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2011. "Tax policy and income inequality in the U.S., 1978—2009: A decomposition approach," Working Papers 215, ECINEQ, Society for the Study of Economic Inequality.
  4. Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2014. "Tax policy and income inequality in the US, 1979-2007," ZEW Discussion Papers 14-001, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Lundberg, Shelly, 2013. "Educational Inequality and the Returns to Skills," IZA Discussion Papers 7595, Institute for the Study of Labor (IZA).
  6. Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2013. "Partisan Tax Policy and Income Inequality in the U.S., 1979-2007," IZA Discussion Papers 7190, Institute for the Study of Labor (IZA).
  7. Jonathan A. Schwabish, 2006. "Earnings Inequality and High Earners: Changes During and after the Stock Market Boom of the 1990s: Working Paper 2006-06," Working Papers 17738, Congressional Budget Office.
  8. Jonathan Heathcote & Fabrizio Perri & Giovanni L. Violante, 2010. "Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States: 1967-2006," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 13(1), pages 15-51, January.

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