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Long-run inequality persistence in the U.S., 1870–2019

Author

Listed:
  • Carlos Gayán-Navarro

    (Universidad de Zaragoza)

  • Marcos Sanso-Navarro

    (Universidad de Zaragoza)

Abstract

This paper studies the long-run persistence of inequality in the U.S. With this aim, both income and wealth inequality measures covering the period from 1870 to 2019 have been analyzed. The persistent character of inequality has been assessed using unit root and structural break test statistics for time series. Furthermore, the determinants of inequality persistence have been explored by implementing Bayesian model averaging techniques in a generalized linear model framework. Our results suggest that the wealth-to-income ratio displays a non-stationary behavior throughout the whole sample period. On the contrary, the Gini index of disposable income and the top 10% income share alternate between I(0) and I(1) regimes. We also find that, while a higher level of globalization increases the persistence of income inequality, it is inversely related to the levels of educational attainment and trade union membership.

Suggested Citation

  • Carlos Gayán-Navarro & Marcos Sanso-Navarro, 2024. "Long-run inequality persistence in the U.S., 1870–2019," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(1), pages 261-281, March.
    • Handle: RePEc:spr:soinre:v:172:y:2024:i:1:d:10.1007_s11205-024-03309-8
    DOI: 10.1007/s11205-024-03309-8
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    More about this item

    Keywords

    Inequality; Unit roots; Structural breaks; Bayesian model averaging;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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