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Growing inequality of family incomes: changing families and changing wages

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Author Info
Katharine Bradbury
Abstract

It is widely known that the incomes of U.S. families became more unequal during the 1980s. The reasons for this rise, however, are not at all clear. Numerous factors have been implicated including slow growth, rising demand for highly educated workers, and shifts in family structure and family members' work patterns.> This article describes the 1973-94 increase in inequality of family incomes and related shifts in wage inequality, work trends, and family patterns. The author also examines patterns of inequality among the nine Census regions in the United States and differences in their economic and demographic characteristics. She then investigates the relationship between family income inequality and these factors. In brief, changes in both economic factors and family structure have been associated with rising family income inequality over the last two decades, with the increase in single parenthood and the growing wage premium to college education playing key roles. Among regions, part-time work, low labor force participation, and minority population are associated with greater inequality.

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Article provided by Federal Reserve Bank of Boston in its journal New England Economic Review.

Volume (Year): (1996)
Issue (Month): Jul ()
Pages: 55-82
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Handle: RePEc:fip:fedbne:y:1996:i:jul:p:55-82

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Keywords: Income distribution ; Wages;

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  1. Willem Thorbecke, 2002. "A Dual Mandate for the Federal Reserve: The Pursuit of Price Stability and Full Employment," Eastern Economic Journal, Eastern Economic Association, vol. 28(2), pages 255-268, Spring. [Downloadable!]
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  2. Willem Thorbecke, . "Who Pays for Disinflation? Disinflationary Monetary Policy and the Distribution of Income," Economics Public Policy Brief Archive 38, Levy Economics Institute, The. [Downloadable!]
  3. Anna Hardman & Yannis Ioannides, 2004. "Income Mixing and Housing in U.S. Cities: Evidence from Neighborhood Clusters of the American Housing Survey," Discussion Papers Series, Department of Economics, Tufts University 0420, Department of Economics, Tufts University. [Downloadable!]
  4. Richard V. Burkhauser & Kenneth A. Couch & Andrew Houtenville & Ludmila Rovba, 2004. "Income Inequality in the 1990s: Re-Forging a Lost Relationship?," Working papers 2004-11, University of Connecticut, Department of Economics. [Downloadable!]
  5. Yolanda K. Kodrzycki, 2004. "College completion gaps between blacks and whites: what accounts for regional differences," New England Economic Review, Federal Reserve Bank of Boston, pages 37-62. [Downloadable!]
  6. Mary C. Daly & Robert G. Valletta, 2000. "Inequality and poverty in the United States: the effects of changing family behavior and rising wage dispersion," Working Papers in Applied Economic Theory 2000-06, Federal Reserve Bank of San Francisco. [Downloadable!]
  7. Mary C. Daly & Robert G. Valletta, 2000. "Changing Family Behavior and the U.S. Income Distribution," Econometric Society World Congress 2000 Contributed Papers 1640, Econometric Society. [Downloadable!]
  8. Anna Hardman & Yannis Ioannides, 2004. "Neighbors’ Income Distribution: Economic Segregation and Mixing in US Urban Neighborhoods," Discussion Papers Series, Department of Economics, Tufts University 0421, Department of Economics, Tufts University. [Downloadable!]
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