Disaggregating the Effect of the Business Cycle on the Distribution of Income
This paper disaggregates total household income into a complete set of components and studies the comparative cyclicality of these components. The cyclical responsiveness of total household income, wages, hours of work and total labor market income of heads and wives, and transfer income is compared across income, race, sex, and age groups. This provides a picture of the channels by which economic cyclicality produces income change. Significant differences in elasticities are found to exist both between different income components and between different population groups for the same components. The narrowing income distribution in times of high growth occurs primarily because of large elasticities on head's labor market income among the poor. Both wages and hours show evidence of cyclicality. The labor market earnings of women--both wives and household heads--are far less responsive to growth. Cyclicality in transfer income varies enormously between population groups and by type of transfer. Copyright 1989 by The London School of Economics and Political Science.
If 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.
Volume (Year): 56 (1989)
Issue (Month): 222 (May)
|Contact details of provider:|| Postal: Houghton Street, London WC2A 2AE|
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0013-0427|
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.:
- Bils, Mark J, 1985. "Real Wages over the Business Cycle: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 666-689, August.
- Geary, Patrick T & Kennan, John, 1982. "The Employment-Real Wage Relationship: An International Study," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 854-871, August.
- Charles M. Beach, 1974.
"Cyclical Sensitivity of Aggregate Income Inequality,"
162, Queen's University, Department of Economics.
- Beach, Charles M, 1977. "Cyclical Sensitivity of Aggregate Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 56-66, February.
- Blank, Rebecca M, 1989.
"Disaggregating the Effect of the Business Cycle on the Distribution of Income,"
London School of Economics and Political Science, vol. 56(222), pages 141-63, May.
- Rebecca M. Blank, 1987. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," NBER Working Papers 2397, National Bureau of Economic Research, Inc.
- repec:fth:prinin:150 is not listed on IDEAS
- Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
- Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
- Hirsch, Barry T, 1980. "Poverty and Economic Growth: Has Trickle Down Petered Out?," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 151-158, January.
- Altonji, Joseph & Ashenfelter, Orley, 1980. "Wage Movements and the Labour Market Equilibrium Hypothesis," Economica, London School of Economics and Political Science, vol. 47(187), pages 217-45, August.
- repec:pri:indrel:dsp010z708w43c is not listed on IDEAS
- Michael R. Ransom, 1982. "Estimating Family Labor Supply Models Under Quantity Constraints," Working Papers 530, Princeton University, Department of Economics, Industrial Relations Section..
- Thornton, James R & Agnello, Richard J & Link, Charles R, 1978. "Poverty and Economic Growth: Trickle Down Peters Out," Economic Inquiry, Western Economic Association International, vol. 16(3), pages 385-394, July.
- Rebecca M. Blank & Alan S. Blinder, 1985. "Macroeconomics, Income Distribution, and Poverty," NBER Working Papers 1567, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:bla:econom:v:56:y:1989:i:222:p:141-63. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.