Recent Trends in Top Income Shares in the United States: Reconciling Estimates from March CPS and IRS Tax Return Data
AbstractAlthough most U.S. income inequality research is based on public use March CPS data, a new wave of research using IRS tax return data reports substantially faster inequality growth for recent years. We show that these apparently inconsistent estimates are largely reconciled when the income distribution and inequality are defined the same way. Using internal CPS data for 1967 to 2006, we show that CPS-based estimates of top income shares are similar to IRS data-based estimates reported by Piketty and Saez (2003). Our results imply that income inequality changes since 1993 are largely driven by changes in incomes of the top 1%. © 2012 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics and Statistics.
Volume (Year): 94 (2012)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Philip Armour & Richard V. Burkhauser & Jeff Larrimore, 2013. "Deconstructing Income and Income Inequality Measures: A Crosswalk from Market Income to Comprehensive Income," American Economic Review, American Economic Association, American Economic Association, vol. 103(3), pages 173-77, May.
- Branko Milanovic, 2014. "The Return of "Patrimonial Capitalism": A Review of Thomas Piketty's Capital in the Twenty-First Century," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 52(2), pages 519-34, June.
- Michał Brzeziński, 2013.
"Parametric modelling of income distribution in Central and Eastern Europe,"
Working Papers, Faculty of Economic Sciences, University of Warsaw
2013-31, Faculty of Economic Sciences, University of Warsaw.
- Michał Brzeziński, 2013. "Parametric Modelling of Income Distribution in Central and Eastern Europe," Central European Journal of Economic Modelling and Econometrics, CEJEME, CEJEME, vol. 5(3), pages 207-230, September.
- Kitov, Ivan & Kitov, Oleg, 2013. "The dynamics of personal income distribution and inequality in the United States," MPRA Paper 48649, University Library of Munich, Germany.
- Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0151, CEDLAS, Universidad Nacional de La Plata.
- Lakner, Christoph & Milanovic, Branko, 2013. "Global income distribution : from the fall of the Berlin Wall to the great recession," Policy Research Working Paper Series, The World Bank 6719, The World Bank.
- Markus Schneider, 2013. "Illustrating the Implications of How Inequality is Measured: Decomposing Earnings Inequality by Race and Gender," Journal of Labor Research, Springer, Springer, vol. 34(4), pages 476-514, December.
- 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, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research 14-001, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Michał Brzeziński, 2013. "Variance estimation for richness measures," Working Papers, Faculty of Economic Sciences, University of Warsaw 2013-03, Faculty of Economic Sciences, University of Warsaw.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.