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Testing the Significance of Income Distribution Changes over the 1980s Business Cycle: A Cross-National Comparison

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Author Info
Burkhauser, Richard V, et al

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Abstract

Using kernel density estimation we describe the distribution of household size-adjusted real income and how it changed over the business cycle of the 1980s in the United States and the United Kingdom. We confirm previous studies that show income inequality increased in the two countries and the middle of the distribution was squashed down. Using a series of statistical tests, however, we find that while the mass in both tails of the distribution increased significantly in both countries over the period, by far the greatest gains were in the upper tail.

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File URL: http://qed.econ.queensu.ca:80/jae/1999-v14.3/
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 14 (1999)
Issue (Month): 3 (May-June)
Pages: 253-72
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Handle: RePEc:jae:japmet:v:14:y:1999:i:3:p:253-72

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  1. Vivek Dehejia & Marcel Voia, 2008. "International Income Comparisons and Location Choice: Methodology, Analysis, and Implications," Carleton Economic Papers 08-02, Carleton University, Department of Economics. [Downloadable!]
  2. Richard V. Burkhauser & Mary C. Daly & Jeff Larrimore & Joyce Kwok, 2008. "The Transformation in Who is Expected to Work in the United States and How it Changed the Lives of Single Mothers and People with Disabilities," Working Papers wp187, University of Michigan, Michigan Retirement Research Center. [Downloadable!]
  3. Richard V. Burkhauser & Takashi Oshio & Ludmila Rovba, 2007. "How the Distribution of After-Tax Income Changed over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan," SOEPpapers 35, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
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