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Revisiting the Great Compression: Wage inequality in the United States, 1940–1960

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  • Taylor Jaworski
  • Gregory T. Niemesh

Abstract

Seminal work by Goldin and Margo (1992) used the first available microdata samples of the United States decennial census to document the narrowing of the wage structure between 1940 and 1960, a pattern they refer to as the “Great Compression.” We revisit their findings using newly available, substantially enlarged samples of the decennial censuses covering this period. Our findings largely replicate the patterns initially reported by Goldin and Margo. However, differences emerge when estimating rates of return to education and experience for specific groups and in a decomposition exercise. A second goal is to indicate directions for future research that might benefit from the use of the complete count census data.

Suggested Citation

  • Taylor Jaworski & Gregory T. Niemesh, 2018. "Revisiting the Great Compression: Wage inequality in the United States, 1940–1960," Historical Methods: A Journal of Quantitative and Interdisciplinary History, Taylor & Francis Journals, vol. 51(1), pages 39-48, January.
    • Handle: RePEc:taf:vhimxx:v:51:y:2018:i:1:p:39-48
    DOI: 10.1080/01615440.2017.1393360
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    References listed on IDEAS

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    1. Gregory Clark, 2015. "The Son Also Rises: Surnames and the History of Social Mobility," Economics Books, Princeton University Press, edition 1, volume 1, number 10181-2, December.
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    1. William J. Collins & Gregory T. Niemesh, 2024. "Income Gains and the Geography of the US Home Ownership Boom, 1940 to 1960," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, pages 87-121, National Bureau of Economic Research, Inc.
    2. Vickers, Chris & Ziebarth, Nicolas L., 2025. "Can the Great Compression be explained by Wartime Wage Controls?," Explorations in Economic History, Elsevier, vol. 98(C).
    3. Carola Frydman & Raven Molloy, 2024. "A Real Great Compression: Inflation and Inequality in the 1940s," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, pages 45-84, National Bureau of Economic Research, Inc.
    4. Artola Blanco, Miguel & Gómez-Blanco, Victor Manuel, 2025. "Reassessing the great compression among top earners: The overlooked role of taxation and self-employment," Explorations in Economic History, Elsevier, vol. 96(C).

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