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

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  • Burkhauser, Richard V, et al

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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Bibliographic 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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Cited by:
  1. Robert Aebi & Klaus Neusser & Peter Steiner, 2008. "Improving Models of Income Dynamics using Cross-Section-Information," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(II), pages 117-151, June.
  2. Anthony B. Atkinson & Andrea Brandolini, 2011. "On the identification of the “middle class”," Working Papers 217, ECINEQ, Society for the Study of Economic Inequality.
  3. 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.
  4. John Angle, 2007. "The Macro Model of the Inequality Process and The Surging Relative Frequency of Large Wage Incomes," Papers 0705.3430, arXiv.org.
  5. Richard V. Burkhauser & Mary C. Daly & Andrew J. Houtenville & Nigar Nargis, 2001. "Economic outcomes of working-age people with disabilities over the business cycle: an examination of the 1980s and 1990s," Working Paper Series 2001-07, Federal Reserve Bank of San Francisco.
  6. 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 on Multidisciplinary Panel Data Research 35, DIW Berlin, The German Socio-Economic Panel (SOEP).
  7. Longford, Nicholas T. & Pittau, Maria Grazia, 2003. "Stability of household income in European countries in the 1990's," IRISS Working Paper Series 2003-08, IRISS at CEPS/INSTEAD.
  8. Erik Alencar de Figueirêdo & José Luis da Silva Netto Junior & Sabino da Silva Pôrto Junior, 2007. "Distribuição, Mobilidade e Polarização de Renda no Brasil: 1987 a 2003," Revista Brasileira de Economia, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil), vol. 61(1), pages 7-32, August.
  9. Onji, Kazuki, 2009. "The response of firms to eligibility thresholds: Evidence from the Japanese value-added tax," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 766-775, June.
  10. 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 Paper Series 2000-06, Federal Reserve Bank of San Francisco.
  11. Bartkowska, Monika & Riedl, Aleksandra, 2012. "Regional convergence clubs in Europe: Identification and conditioning factors," Economic Modelling, Elsevier, vol. 29(1), pages 22-31.
  12. Maximo Camacho & Aida Galiano, 2009. "Income distribution changes across the 1990s expansion: the role of taxes and transfers," Economics Bulletin, AccessEcon, vol. 29(4), pages 3177-3185.
  13. 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.

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