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Earnings Inequality In Usa, 1969–99: Comparing Inequality Using Earnings Equations

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  • Myeong‐Su Yun

Abstract

A simple decomposition method using an earnings equation is proposed by synthesizing two decomposition methodologies, those of Juhn, Murphy, and Pierce (1993) and Fields (2003), in order to study changes in earnings inequality in America during the last three decades in the 20th century. The proposed method enables us to compute both aggregate and detailed decompositions of changes in earnings inequality. The decomposition of earnings inequality change during the last three decades in 20th century shows that the increase in earnings inequality in America was caused by changes in the wage structure and the distribution of unobservables. The premium to education contributes substantially to the widening of earnings inequality during the 1980s and 1990s. A decreasing male wage premium contributes to leveling earnings inequality.

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  • Myeong‐Su Yun, 2006. "Earnings Inequality In Usa, 1969–99: Comparing Inequality Using Earnings Equations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 127-144, March.
  • Handle: RePEc:bla:revinw:v:52:y:2006:i:1:p:127-144
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    File URL: https://doi.org/10.1111/j.1475-4991.2006.00179.x
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    Cited by:

    1. Pallab Kumar Ghosh & Jae Yoon Lee, 2016. "Decomposition of Changes in Korean Wage Inequality, 1998–2007," Journal of Labor Research, Springer, vol. 37(1), pages 1-28, March.
    2. Mike Brewer & Liam Wren-Lewis, 2016. "Accounting for Changes in Income Inequality: Decomposition Analyses for the UK, 1978–2008," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(3), pages 289-322, June.
    3. Brewer, Mike & Wren-Lewis, Liam, 2012. "Accounting for changes in income inequality: decomposition analyses for Great Britain, 1968-2009," ISER Working Paper Series 2012-17, Institute for Social and Economic Research.
    4. Fabián Slonimczyk, 2013. "Earnings inequality and skill mismatch in the U.S.: 1973–2002," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(2), pages 163-194, June.
    5. Pallab Ghosh & Jae Lee, 2016. "Decomposition of Changes in Korean Wage Inequality, 1998–2007," Journal of Labor Research, Springer, vol. 37(1), pages 1-28, March.
    6. David Turchick, 2014. "Job Search and Earnings Mobility," Working Papers, Department of Economics 2014_16, University of São Paulo (FEA-USP).
    7. repec:bla:revinw:v:63:y:2017:i:4:p:685-705 is not listed on IDEAS
    8. Diana Chiliquinga & Gaurav Datt, 2016. "Changing Betas or Changing X’s? Evolution of Income and Poverty in Ecuador, 2001-12," Monash Economics Working Papers 14-16, Monash University, Department of Economics.
    9. Fields Gary S. & Duval-Hernández Robert & Jakubson George H., 2015. "Analysing Income Distribution Changes: Anonymous Versus Panel Income Approaches," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).
    10. Farrell, Niall, 2017. "What Factors Drive Inequalities in Carbon Tax Incidence? Decomposing Socioeconomic Inequalities in Carbon Tax Incidence in Ireland," Ecological Economics, Elsevier, vol. 142(C), pages 31-45.
    11. Ramani Gunatilaka & Duangkamon Chotikapanich, 2009. "Accounting For Sri Lanka'S Expenditure Inequality 1980-2002: Regression-Based Decomposition Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(4), pages 882-906, December.
    12. Peter Lindner, 2015. "Factor decomposition of the wealth distribution in the euro area," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(2), pages 291-322, May.

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