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Individual earnings and household incomes: mutually reinforcing inequalities?

Author

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  • Wiemer Salverda

    (University of Amsterdam, Amsterdam Institute for Advanced Labour Studies (AIAS) and Amsterdam Centre for Inequality Studies (AMCIS), The Netherlands, and Coordinator of Growing Inequalities’ Impacts (GINI) Research Project 2010–2013 (gini-research.org))

Abstract

Inequality's rise and impacts deservedly receive much attention in scientific and public debates, with most of the attention being paid to the very top of the income or wealth distribution. This contribution complements this with a study of the broader top – the top 10 per cent – where labour-market outcomes play a predominant role. However, the analysis still needs to come to terms with the death of the single-breadwinner model and its replacement with two or more earners in the household. At the same time this brings in the (household distribution of) hours of work as an important new dimension of inequality, in addition to the traditional wage levels. It will be shown, using data for 26 EU countries, that these changes complicate the linkages of wage inequality and income inequality and add to the importance of employee earnings for income inequality. For this analysis, aggregate inequality measures will be put aside in favour of a more detailed consideration across the distributions of earnings and incomes. Some implications for analysis and policy are discussed in the conclusion.

Suggested Citation

  • Wiemer Salverda, 2015. "Individual earnings and household incomes: mutually reinforcing inequalities?," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 12(2), pages 190-203, September.
    • Handle: RePEc:elg:ejeepi:v:12:y:2015:i:2:p190-203
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    Citations

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    Cited by:

    1. repec:aia:aiaswp:wp164 is not listed on IDEAS
    2. Wiemer Salverda, 2016. "The tsunamis of educational attainment and part-time employment, and the change of the labour force 1960–2010: what can be learned about self-reinforcing labour-market inequality from the case of the ," ImPRovE Working Papers 16/04, Herman Deleeck Centre for Social Policy, University of Antwerp.
    3. Wiemer Salverda, 2019. "Top Incomes, Income and Wealth Inequality in the Netherlands: The first 100 Years 1914-2014 -what's next?," World Inequality Lab Working Papers hal-02877004, HAL.
    4. Wiemer Salverda; & Veerle Rook;, 2023. "The vicious entanglement of labour-market and income inequalities in Europe," Working Papers 2302, Herman Deleeck Centre for Social Policy, University of Antwerp.
    5. Salverda, Wiemer & Thewissen, Stefan, 2017. "How has the middle fared in the netherlands? A tale of stagnation and population shifts," INET Oxford Working Papers 2017-14, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.

    More about this item

    Keywords

    income inequality; wage inequality; top incomes; breadwinner model; household labour supply;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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