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Income inequality: a tale of two cycles?

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  • Tom Clark

    (Institute for Fiscal Studies)

  • Jayne Taylor

    (Institute for Fiscal Studies)

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    Abstract

    Building on previous work, this paper documents the changes in income inequality that have occurred over the past 20 years, right up until the late 1990s. In particular, we are interested in whether or not the path of inequality in the most recent economic cycle differed from that observed in the 1980s. The robustness of the results is investigated using innovative statistical techniques, in an attempt to identify whether or not the observed changes represent real increases or decreases in inequality or whether they can be attributed simply to sampling variation between years. Finally, some preliminary results are presented which attempt to identify some of the reasons underlying the observed trends in income inequality, with a particular focus on the role of the labour market.

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    File URL: http://www.ifs.org.uk/fs/articles/0013a.pdf
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    Bibliographic Info

    Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

    Volume (Year): 20 (1999)
    Issue (Month): 4 (December)
    Pages: 387-408

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    Handle: RePEc:ifs:fistud:v:20:y:1999:i:4:p:387-408

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    1. Richard B. Freeman, 1991. "How Much Has De-Unionisation Contributed to the Rise in Male Earnings Inequality?," NBER Working Papers 3826, National Bureau of Economic Research, Inc.
    2. repec:fth:prinin:287 is not listed on IDEAS
    3. Amanda Gosling & Stephen Machin, 1994. "Trade Unions and the Dispersion of Earnings in British Establishments, 1980-90," NBER Working Papers 4732, National Bureau of Economic Research, Inc.
    4. David Card, 1992. "The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?," NBER Working Papers 4195, National Bureau of Economic Research, Inc.
    5. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 193-211, January.
    6. Disney, Richard & Webb, Steven, 1991. "Why Are There So Many Long Term Sick in Britain?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(405), pages 252-62, March.
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    Cited by:
    1. Santiago Budría & Pedro Telhado-Pereira, 2011. "Educational Qualifications And Wage Inequality: Evidence For Europe," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(2), pages 5-34, Autumn.
    2. Timothy Hatton, 2002. "Why Has UK Net Immigration Increased?," CEPR Discussion Papers 457, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    3. Bargain, Olivier, 2009. "The Distributional Effects of Tax-Benefit Policies under New Labour: A Shapley Decomposition," IZA Discussion Papers 4296, Institute for the Study of Labor (IZA).
    4. Timothy Hatton, 2005. "Explaining trends in UK immigration," Journal of Population Economics, Springer, Springer, vol. 18(4), pages 719-740, November.

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