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How the Distribution of After-Tax Income Changed Over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan

Author

Listed:
  • Richard V. Burkhauser

    (Cornell University)

  • Takashi Oshio

    (Kobe University)

  • Ludmila Rovba

    (Analysis Group, Inc.)

Abstract

Using kernel density estimation we find that over the 1990s business cycles in the United States and Great Britain the entire distribution of after-tax (disposable) income moved to the right while inequality declined. In contrast, Germany and Japan experienced less growth, a rise in inequality, and a decline in the middle mass of their distributions, that spread mostly to the right, much like in the United States over its 1980s business cycle. Inequality fell within the older populations of all four countries; inequality also fell within the younger populations of the United States and Great Britain, but it rose substantially in Germany and Japan.

Suggested Citation

  • 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.
    • Handle: RePEc:jid:journl:y:2008:v:17:i:1:p:87-109
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    Cited by:

    1. 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.
    2. 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.
    3. Richard V. Burkhauser & Mary C. Daly & Philip R. de Jong, 2008. "Curing the Dutch Disease: Lessons for United States Disability Policy," Working Papers wp188, University of Michigan, Michigan Retirement Research Center.

    More about this item

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    JEL classification:

    • D3 - Microeconomics - - Distribution

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