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Income Inequality in the 1990s: Re-Forging a Lost Relationship?

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Author Info
Richard V. Burkhauser (Department of Policy Analysis and Management, Cornell University)
Kenneth A. Couch (Department of Economics, University of Connecticut)
Andrew Houtenville (School of Industrial and Labor Relations, Cornell University)
Ludmila Rovba (Department of Econonomics, Cornell University)

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Abstract

Using data from March Current Population Surveys we find gains from economic growth over the 1990s business cycle (1989-2000) were more equitably distributed than over the 1980s business cycle (1979-1989) using summary inequality measures as well as kernel density estimations. The entire distribution of household size-adjusted income moved upwards in the 1990s with profound improvements for African Americans, single mothers and those living in households receiving welfare. Most gains occurred over the growth period 1993-2000. Improvements in average income and income inequity over the latter period are reminiscent of gains seen in the first three decades after World War II.

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Publisher Info
Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2004-11.

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Length: 44 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:uct:uconnp:2004-11

Note: We thank J.S. Butler and Mary C. Daly for their comments on earlier versions of this paper.
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Related research
Keywords: income inequality; Gini trends; kernel density estimations; economic well-being;

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D3 - Microeconomics - - Distribution

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References listed on IDEAS
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.:
  1. Kenneth Couch & Mary Daly, 2004. "The improving relative status of black men," Working Papers in Applied Economic Theory 2004-02, Federal Reserve Bank of San Francisco. [Downloadable!]
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  2. Katharine Bradbury, 1996. "Growing inequality of family incomes: changing families and changing wages," New England Economic Review, Federal Reserve Bank of Boston, issue Jul, pages 55-82. [Downloadable!]
  3. Burkhauser, Richard V. & Butler, J. S. & Feng, Shuaizhang & Houtenville, Andrew J., 2004. "Long term trends in earnings inequality: what the CPS can tell us," Economics Letters, Elsevier, vol. 82(2), pages 295-299, February. [Downloadable!] (restricted)
  4. Lerman, Robert I, 1996. "The Impact of the Changing US Family Structure on Child Poverty and Income Inequality," Economica, London School of Economics and Political Science, vol. 63(250), pages S119-39, Suppl.. [Downloadable!] (restricted)
  5. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
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  6. Danziger, Sheldon & Gottschalk, Peter, 1987. "Earnings Inequality, the Spatial Concentration of Poverty, and the Underclass," American Economic Review, American Economic Association, vol. 77(2), pages 211-15, May. [Downloadable!] (restricted)
  7. Dooley, Martin D & Gottschalk, Peter, 1984. "Earnings Inequality among Males in the United States: Trends and the Effect of Labor Force Growth," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 59-89, February. [Downloadable!] (restricted)
  8. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
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  1. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins & Jeff Larrimore, 2008. "Estimating Trends in US Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring," NBER Working Papers 14247, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. repec:ese:iserwp: is not listed on IDEAS
  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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