A "Second Opinion" On The Economic Health Of The American Middle Class
AbstractResearchers considering levels and trends in the resources available to the middle class traditionally measure the pre-tax cash income of tax units or the pre-tax, post-transfer, size-adjusted income of households. Choices regarding the income measure and sharing unit to be analyzed, as well as other methodological choices, carry significant implications for assessing income trends. In particular, we show that focusing on tax units rather than households and not adjusting for sharing unit size greatly reduces measured growth in middle class income, as does excluding the effect of taxes and the value of in-kind benefits. As an example, we demonstrate how much these distinctions change the observed distribution of benefits from the tax exclusion of employer provided health insurance.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 65 (2012)
Issue (Month): 1 (March Citation: 65 National Tax Journal 7-32 (March 2012))
Other versions of this item:
- Richard V. Burkhauser & Jeff Larrimore & Kosali I. Simon, 2011. "A "Second Opinion" on the Economic Health of the American Middle Class," NBER Working Papers 17164, National Bureau of Economic Research, Inc.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wankyo Chung, 2003. "Fringe Benefits and Inequality in the Labor Market," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 517-529, July.
- Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
- Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality In The United States, 1913-1998," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 1-39, February.
- Lynn Karoly & Gary Burtless, 1995. "Demographic change, rising earnings inequality, and the distribution of personal well-being, 1959–1989," Demography, Springer, vol. 32(3), pages 379-405, August.
- Jeff Larrimore & Richard V. Burkhauser & Shuaizhang Feng & Laura Zayatz, 2008.
"Consistent Cell Means for Topcoded Incomes in the Public Use March CPS (1976-2007),"
NBER Working Papers
13941, National Bureau of Economic Research, Inc.
- Jeff Larrimore & Richard Burkhauser & Shuaizhang Feng & Laura Zayatz, 2008. "Consistent Cell Means for Topcoded Incomes in the Public Use March CPS (1976-2007)," Working Papers 08-06, Center for Economic Studies, U.S. Census Bureau.
- Andrea Brandolini & Anthony B. Atkinson, 2001. "Promise and Pitfalls in the Use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study," Journal of Economic Literature, American Economic Association, vol. 39(3), pages 771-799, September.
- Robert J. Gordon, 2009. "Misperceptions About the Magnitude and Timing of Changes in American Income Inequality," NBER Working Papers 15351, National Bureau of Economic Research, Inc.
- Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2009.
"Top Incomes in the Long Run of History,"
NBER Working Papers
15408, National Bureau of Economic Research, Inc.
- Auten, Gerald & Gee, Geoffrey, 2009. "Income Mobility in the United States: New Evidence from Income Tax Data," National Tax Journal, National Tax Association, vol. 62(2), pages 301-28, June Cita.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:CitEc Project, subscribe to its RSS feed for this item.
- Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2014. "Tax policy and income inequality in the US, 1979-2007," ZEW Discussion Papers 14-001, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Richard V. Burkhauser & Markus H. Hahn & Roger Wilkins, 2013.
"Measuring Top Incomes Using Tax Record Data: A Cautionary Tale from Australia,"
NBER Working Papers
19121, National Bureau of Economic Research, Inc.
- Richard V. Burkhauser & Markus H. Hahn & Roger Wilkins, 2013. "Measuring Top Incomes Using Tax Record Data: A Cautionary Tale from Australia," Melbourne Institute Working Paper Series wp2013n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Bargain, Olivier & Dolls, Mathias & Immervoll, Herwig & Neumann, Dirk & Peichl, Andreas & Pestel, Nico & Siegloch, Sebastian, 2013. "Partisan Tax Policy and Income Inequality in the U.S., 1979-2007," IZA Discussion Papers 7190, Institute for the Study of Labor (IZA).
- Dennis Fixler & David S. Johnson, 2012. "Accounting for the Distribution of Income in the U.S. National Accounts," NBER Chapters, in: Measuring Economic Sustainability and Progress National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).
If references are entirely missing, you can add them using this form.