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The Budgetary Implications of Reducing U.S. Income Inequality Through Income Transfer Programs

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  • Boisvert, Richard N.
  • Ranney, Christine K.

Abstract

In this paper, we have recognized that the relatively constant inequality in the distribution of U.S. family income masks dramatic changes in the structure of the income distribution and the composition of personal incomes. Using relatively new procedures for decomposing the Gini measure of income inequality, we have gained a better understanding of the relationships among changes in the sources of income and the income distribution. This is facilitated through the use of data collected by the Census Bureau in the Survey of Income and Program Participation, which is the only set of data currently available that contains exhaustive lists of income and asset information at the household level. The empirical results are used in conjunction with data on transfer program expenditures to gain some perspective on the relative costs of reducing income inequality by increasing program benefits.

Suggested Citation

  • Boisvert, Richard N. & Ranney, Christine K., 1991. "The Budgetary Implications of Reducing U.S. Income Inequality Through Income Transfer Programs," Research Bulletins 123104, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudarb:123104
    DOI: 10.22004/ag.econ.123104
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    References listed on IDEAS

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    1. David Betson & Robert Haveman, 1984. "The Role of Income Transfers in Reducing Inequality between and within Regions," NBER Chapters, in: Economic Transfers in the United States, pages 283-326, National Bureau of Economic Research, Inc.
    2. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    3. Boisvert, Richard N. & Ranney, Christine K., 1990. "Accounting For The Importance Of Nonfarm Income On Farm Family Income Inequality In New York," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(01), pages 1-11, April.
    4. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    5. Gastwirth, Joseph L, 1972. "The Estimation of the Lorenz Curve and Gini Index," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 306-316, August.
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    Cited by:

    1. Schmit, Todd M. & Boisvert, Richard N. & Tauer, Loren W., 1999. "Measuring the Risks of New York Dairy Producers," Working Papers 127689, Cornell University, Department of Applied Economics and Management.
    2. Schmit, Todd M. & Boisvert, Richard N. & Tauer, Loren W., 1999. "Measuring The Risks Of New York Dairy Farmers," 1999 Annual meeting, August 8-11, Nashville, TN 21549, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Boisvert, Richard N. & Schmit, Todd M., 1996. "Distribution Of Community Water Systems Across The United States With Emphasis On Size, Water Production, Ownership, And Treatment," Research Bulletins 122989, Cornell University, Department of Applied Economics and Management.

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