IDEAS home Printed from https://ideas.repec.org/a/jae/japmet/v14y1999i3p253-72.html

Testing the Significance of Income Distribution Changes over the 1980s Business Cycle: A Cross-National Comparison

Author

Listed:
  • Burkhauser, Richard V.
  • Amy Crews Cutts
  • Mary C. Daly
  • Stephen P. Jenkins

Abstract

Using kernel density estimation we describe the distribution of household size-adjusted real income and how it changed over the business cycle of the 1980s in the United States and the United Kingdom. We confirm previous studies that show income inequality increased in the two countries and the middle of the distribution was squashed down. Using a series of statistical tests, however, we find that while the mass in both tails of the distribution increased significantly in both countries over the period, by far the greatest gains were in the upper tail.

Suggested Citation

  • Burkhauser, Richard V. & Amy Crews Cutts & Mary C. Daly & Stephen P. Jenkins, 1999. "Testing the Significance of Income Distribution Changes over the 1980s Business Cycle: A Cross-National Comparison," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 253-272, May-June.
    • Handle: RePEc:jae:japmet:v:14:y:1999:i:3:p:253-72
    as

    Download full text from publisher

    File URL: http://qed.econ.queensu.ca:80/jae/1999-v14.3/
    File Function: Supporting data files and programs
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John Angle, 2007. "The Macro Model of the Inequality Process and The Surging Relative Frequency of Large Wage Incomes," Papers 0705.3430, arXiv.org.
    2. Vivek Dehejia & Marcel Voia, 2008. "International Income Comparisons and Location Choice: Methodology, Analysis, and Implications," Carleton Economic Papers 08-02, Carleton University, Department of Economics.
    3. Olga Alonso-Villar & Coral del Río, 2024. "Where Do Families Headed by Same-Sex Couples Fall Within the U.S. Income Distribution?," Working Papers 2401, Universidade de Vigo, Departamento de Economía Aplicada.
    4. Timothy Smeeding & Andrea Brandolini & Anthony Atkinson, 2001. "Producing Time Series Data for Income Distribution: Sources, Methods and Techniques," LIS Working papers 295, LIS Cross-National Data Center in Luxembourg.
    5. Robert Aebi & Klaus Neusser & Peter Steiner, 2008. "Improving Models of Income Dynamics using Cross-Section-Information," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 144(II), pages 117-151, June.
    6. Onji, Kazuki, 2009. "The response of firms to eligibility thresholds: Evidence from the Japanese value-added tax," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 766-775, June.
    7. Richard V. Burkhauser & Mary C. Daly & Jeff Larrimore & Joyce Kwok, 2008. "The Transformation in Who is Expected to Work in the United States and How it Changed the Lives of Single Mothers and People with Disabilities," Working Papers wp187, University of Michigan, Michigan Retirement Research Center.
    8. Joanna Tyrowicz & Lucas Velde & Jan Svejnar, 2017. "Effects Of Labor Reallocation On Productivity And Inequality—Insights From Studies On Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 712-732, July.
    9. Maximo Camacho & Aida Galiano, 2009. "Income distribution changes across the 1990s expansion: the role of taxes and transfers," Economics Bulletin, AccessEcon, vol. 29(4), pages 3177-3185.
    10. Sami Remes, 2022. "Decomposition of the Shrinking Middle-class and Directional Mobility in Finland 1995–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(3), pages 1281-1312, August.
    11. Walter Sosa-Escudero & Sergio Petralia, 2011. "Anatomy of Distributive Changes in Argentina," Chapters, in: Werner Baer & David Fleischer (ed.), The Economies of Argentina and Brazil, chapter 10, Edward Elgar Publishing.
    12. Remes Sami, 2019. "Middle class decline in Finland 1995-2012 : Decomposition and directional mobility," Working Papers 1925, Tampere University, Faculty of Management and Business, Economics.
    13. Richard V. Burkhauser & Takashi Oshio & Ludmila Rovba, 2008. "How the Distribution of After-Tax Income Changed Over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan," Journal of Income Distribution, Ad libros publications inc., vol. 17(1), pages 87-109, March.
    14. Mary C. Daly & Robert G. Valletta, 2000. "Inequality and Poverty in the United States: The Effects of Rising Male Wage Dispersion and Changing Family Behavior," Working Paper Series 2000-06, Federal Reserve Bank of San Francisco.
    15. M. Grazia Pittau & Roberto Zelli, 2001. "Income distribution in Italy: A nonparametric analysis," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 10(1), pages 175-189, January.
    16. Bartkowska, Monika & Riedl, Aleksandra, 2012. "Regional convergence clubs in Europe: Identification and conditioning factors," Economic Modelling, Elsevier, vol. 29(1), pages 22-31.
    17. Zuobao Wang & Yao Chen & Tianrun Lin & Xinyi Xing, 2024. "The Dynamics of Inequality and Poverty Among Children in Colombia During the COVID-19 Recession," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 17(2), pages 815-843, April.
    18. Anthony B. Atkinson & Andrea Brandolini, 2011. "On the identification of the “middle class”," Working Papers 217, ECINEQ, Society for the Study of Economic Inequality.
    19. Longford, N.T. & Pittau, M.G., 2006. "Stability of household income in European countries in the 1990s," Computational Statistics & Data Analysis, Elsevier, vol. 51(2), pages 1364-1383, November.
    20. Dehejia Vivek H. & Voia Marcel C., 2012. "International Income Comparisons and Social Welfare: Methodology, Analysis, and Implications," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-24, June.
    21. Richard V. Burkhauser & Mary C. Daly & Andrew J. Houtenville & Nigar Nargis, 2001. "Economic Outcomes of Working-Age People with Disabilities over the Business Cycle: An Examination of the 1980s and 1990s," Working Paper Series 2001-07, Federal Reserve Bank of San Francisco.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jae:japmet:v:14:y:1999:i:3:p:253-72. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    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 (email available below). General contact details of provider: http://www.interscience.wiley.com/jpages/0883-7252/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.