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Income inequality: a tale of two cycles?

Author

Listed:
  • Tom Clark

    (Institute for Fiscal Studies)

  • Jayne Taylor

    (Institute for Fiscal Studies)

Abstract

Building on previous work, this paper documents the changes in income inequality that have occurred over the past 20 years, right up until the late 1990s. In particular, we are interested in whether or not the path of inequality in the most recent economic cycle differed from that observed in the 1980s. The robustness of the results is investigated using innovative statistical techniques, in an attempt to identify whether or not the observed changes represent real increases or decreases in inequality or whether they can be attributed simply to sampling variation between years. Finally, some preliminary results are presented which attempt to identify some of the reasons underlying the observed trends in income inequality, with a particular focus on the role of the labour market.

Suggested Citation

  • Tom Clark & Jayne Taylor, 1999. "Income inequality: a tale of two cycles?," Fiscal Studies, Institute for Fiscal Studies, vol. 20(4), pages 387-408, December.
    • Handle: RePEc:ifs:fistud:v:20:y:1999:i:4:p:387-408
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    References listed on IDEAS

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    1. David Card, 1992. "The Effect of Unions on the Distribution of Wages: Redistribution or Relabelling?," NBER Working Papers 4195, National Bureau of Economic Research, Inc.
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    3. Richard B. Freeman, 1991. "How Much Has De-Unionisation Contributed to the Rise in Male Earnings Inequality?," NBER Working Papers 3826, National Bureau of Economic Research, Inc.
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    6. Disney, Richard & Webb, Steven, 1991. "Why Are There So Many Long Term Sick in Britain?," Economic Journal, Royal Economic Society, vol. 101(405), pages 252-262, March.
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    Cited by:

    1. Timothy Hatton, 2002. "Why Has UK Net Immigration Increased?," CEPR Discussion Papers 457, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    2. Santiago Budría & Pedro Telhado-Pereira, 2011. "Educational Qualifications And Wage Inequality: Evidence For Europe," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(2), pages 5-34, Autumn.
    3. Timothy Hatton, 2005. "Explaining trends in UK immigration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(4), pages 719-740, November.
    4. Olivier Bargain, 2009. "The distributional effects of tax-benefit policies under New Labour : a Shapley decomposition," Working Papers 200907, School of Economics, University College Dublin.
    5. Tony Atkinson, 2002. "Top Incomes in the United Kingdom Over the Twentieth Century," Oxford Economic and Social History Working Papers _043, University of Oxford, Department of Economics.
    6. Tony Atkinson, 2002. "Top Incomes in the United Kingdom Over the Twentieth Century," Economics Series Working Papers 2002-W43, University of Oxford, Department of Economics.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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