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A Cross-National Comparison Of Permanent Inequality In The United States And Germany

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Author Info
Richard V. Burkhauser
John G. Poupore
Abstract

Traditional cross-sectional measures find greater inequality in the United States than in industrialized Western European countries, but are unable to distinguish transitory from permanent inequality. With longitudinal data, we measure cross-sectional inequality during the 1980s using the Shorrocks measure of income stability to find the degree to which single-period measures exaggerate permanent inequality. Surprisingly, given the smaller social welfare system and the less restrictive labor markets in the United States, we find that both single-period inequality and the share of that inequality that persists over time are greater in the United States than in Germany. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog

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Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 79 (1997)
Issue (Month): 1 (February)
Pages: 10-17
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Handle: RePEc:tpr:restat:v:79:y:1997:i:1:p:10-17

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  1. Edward J. Bird, . "Does the Welfare State Induce Risk Taking?," Wallis Working Papers WP11, University of Rochester - Wallis Institute of Political Economy. [Downloadable!]
  2. Jan Goebel, 2001. "Decomposing Permanent and Transitory Poverty," Discussion Papers of DIW Berlin 256, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  3. Thomas A. DiPrete, 2001. "Life Course Risks, Mobility Regimes, and Mobility Consequences : A Comparison of Sweden, Germany and the U.S," Discussion Papers of DIW Berlin 255, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  4. Andrew J. Houtenville, 2001. "Income Mobility in the United States and Germany : A Comparison of Two Classes of Mobility Measures using the GSOEP, PSID, and CPS," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 59-65. [Downloadable!] (restricted)
  5. Richard Blundell & Hamish Low & Ian Preston, 2004. "Income risk and consumption inequality: a simulation study," IFS Working Papers W04/26, Institute for Fiscal Studies. [Downloadable!]
  6. Agell, Jonas, 2003. "Efficiency and Equality in the Labour Market," Research Papers in Economics 2003:11, Stockholm University, Department of Economics. [Downloadable!]
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