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The Shrinking Middle-Income Class: A Multivariate Analysis

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Author Info

  • Joe C. Davis

    (Trinity University)

  • John H. Huston

    (Trinity University)

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    Abstract

    Deindustrialization, a decline in union membership, maturation of baby-boomers, shorter working hours and increasing numbers of families headed by women and blacks have all been cited as causes of the "shrinking of the middle class." Simultaneously testing these hypotheses, we find that the decline in union membership and fewer annual hours of work are the most important factors explaining the shift towards the lower-income class. The increase in the service sector had little impact. The major cause of movement into the upper class is the increasing number of two-income families.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume18/V18N3P277_285.pdf
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    Bibliographic Info

    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 18 (1992)
    Issue (Month): 3 (Summer)
    Pages: 277-285

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    Handle: RePEc:eej:eeconj:v:18:y:1992:i:3:p:277-285

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    Web page: http://www.ramapo.edu/eea/journal.html
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    Related research

    Keywords: Income; Middle Income;

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    References

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    1. Charles M. Beach, 1989. "Review: Dollars and Dreams: A Reduced Middle Class? Alternative Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 162-193.
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    Citations

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    Cited by:
    1. Jérôme Lefranc, 2012. "Polarisation et déclin de la classe moyenne : le cas de la Russie," Documents de travail du Centre d'Economie de la Sorbonne 12054, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Eduardo Lora & Johanna Fajardo, 2011. "Latin American Middle Classes: The Distance between Perception and Reality," IDB Publications 65158, Inter-American Development Bank.
    3. repec:hal:journl:halshs-00775929 is not listed on IDEAS
    4. Chiara GIGLIARANO & Karl MOSLER, 2009. "Measuring middle-class decline in one and many attributes," Working Papers 333, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    5. Popli, Gurleen, 2006. "The rising wage inequality in Mexico, 1984-2000: A distributional analysis," MPRA Paper 399, University Library of Munich, Germany, revised 2006.
    6. Jérôme Lefranc, 2012. "Polarisation et déclin de la classe moyenne : le cas de la Russie," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00775929, HAL.
    7. Duclos, Jean-Yves & Echevin, Damien, 2005. "Bi-polarization comparisons," Economics Letters, Elsevier, vol. 87(2), pages 249-258, May.
    8. Chiara Gigliarano & Karl Mosler, 2009. "Constructing indices of multivariate polarization," Journal of Economic Inequality, Springer, vol. 7(4), pages 435-460, December.
    9. Mustafa Yavuz Cakir & Alain Kabundi, 2011. "Trade Shocks from BRIC to South Africa: A Global VAR Analysis," Working Papers 250, Economic Research Southern Africa.
    10. Ma Casilda Lasso de la Vega & Ana Urrutia & Henar Diez, 2008. "Unit-consistency and polarization of income distributions," Working Papers 100, ECINEQ, Society for the Study of Economic Inequality.

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