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Accounting for United States Household Income Inequality Trends: The Changing Importance of Household Structure and Male and Female Labor Earnings Inequality

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  • Jeff Larrimore

Abstract

type="main"> Using a shift-share analysis on March CPS data, this paper estimates the degree to which changes in labor earnings, employment, and marriage patterns account for household income inequality growth in the United States since 1979. The factors contributing to the rapid rise in income inequality in the 1980s differ substantially from those contributing to its slower increase since that time. Unlike findings for the 1980s when changes in the correlation of spouses' earnings accounted for income inequality growth, this factor is no longer a major contributor toward its continued increase. Additionally, the 2000s business cycle is the first full business cycle in at least 30 years where changes in earnings of male household heads accounted for declines in income inequality. Instead, the continued growth in income inequality in the 2000s was accounted for primarily by increases in female earnings inequality and declines in both male and female employment.

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  • Jeff Larrimore, 2014. "Accounting for United States Household Income Inequality Trends: The Changing Importance of Household Structure and Male and Female Labor Earnings Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 683-701, December.
  • Handle: RePEc:bla:revinw:v:60:y:2014:i:4:p:683-701
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    File URL: http://hdl.handle.net/10.1111/roiw.12043
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    References listed on IDEAS

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    Cited by:

    1. Olivier Bargain & Mathias Dolls & Herwig Immervoll & Dirk Neumann & Andreas Peichl & Nico Pestel & Sebastian Siegloch, 2011. "Tax policy and income inequality in the U.S., 1978—2009: A decomposition approach," Working Papers 215, ECINEQ, Society for the Study of Economic Inequality.
    2. repec:spr:demogr:v:55:y:2018:i:3:d:10.1007_s13524-018-0670-y is not listed on IDEAS
    3. 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.
    4. SOLOGON Denisa & VAN KERM Philippe & LI Jinjing & O'DONOGHUE Cathal, 2018. "Accounting for Differences in Income Inequality across Countries: Ireland and the United Kingdom," LISER Working Paper Series 2018-01, LISER.

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