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On the Allocation of Productivity Growth and the Determinants of U. S. Income Inequality

In: Productivity and Inequality

Author

Listed:
  • Shasha Liu

    (Rice University)

  • Robin C. Sickles

    (Rice University)

  • Shiyi Zhang

    (Rice University)

Abstract

We estimate the determinants of income inequality focusing on the U.S. over 1985—2013. We decompose widely used inequality indices by subgroups, income sources, and factor components based on regression approaches to discover the significant sources of widening inequality in the United States. Our results indicate that education, marriage, gender, race, asset income, as well as employment in manufacturing and financial industries all expand the gap across different income classes.

Suggested Citation

  • Shasha Liu & Robin C. Sickles & Shiyi Zhang, 2018. "On the Allocation of Productivity Growth and the Determinants of U. S. Income Inequality," Springer Proceedings in Business and Economics, in: William H. Greene & Lynda Khalaf & Paul Makdissi & Robin C. Sickles & Michael Veall & Marcel-Cristia (ed.), Productivity and Inequality, pages 71-101, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-68678-3_3
    DOI: 10.1007/978-3-319-68678-3_3
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    More about this item

    Keywords

    Decomposition methods; Income inequality; Entropy indices; Demographics;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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