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Income Inequality in the 1990s: Re-forging a Lost Relationship

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  • Richard V. Burkhauser
  • Kenneth A. Couch
  • Andrew Houtenville
  • Ludmila Rovba

Abstract

Using data from the March Current Population Survey, summary inequality measures as well as kernel density estimations, we find gains from economic growth over the 1990s business cycle (1989-2000) were more equitably distributed than over the1980s business cycle (1979-1989). The entire distribution of household size-adjusted income moved upwards in the 1990s with profound improvements for African Americans, single mothers and those living in households receiving welfare. Most gains occurred over the growth period 1993-2000. Improvements in average income and income inequity over the latter period are reminiscent of gains seen in the first three decades after World War II.

Suggested Citation

  • Richard V. Burkhauser & Kenneth A. Couch & Andrew Houtenville & Ludmila Rovba, 2003. "Income Inequality in the 1990s: Re-forging a Lost Relationship," Journal of Income Distribution, Ad libros publications inc., vol. 12(3-4), pages 2-2, September.
  • Handle: RePEc:jid:journl:y:2003:v:12:i:3-4:p:2-2
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    Cited by:

    1. Richard Burkhauser & Shuaizhang Feng & Stephen Jenkins & Jeff Larrimore, 2009. "Recent Trends in Top Income Shares in the USA: Reconciling Estimates from March CPS and IRS Tax Return Data," Working Papers 09-26, Center for Economic Studies, U.S. Census Bureau.
    2. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins, 2009. "Using The P90/P10 Index To Measure U.S. Inequality Trends With Current Population Survey Data: A View From Inside The Census Bureau Vaults," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 166-185, March.
    3. Richard Burkhauser & Shuaizhang Feng & Stephen Jenkins & Jeff Larrimore, 2011. "Estimating trends in US income inequality using the Current Population Survey: the importance of controlling for censoring," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 393-415, September.
    4. 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.
    5. 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.
    6. 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.

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