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Stagnating Economic Well-Being and Unrelenting Inequality: Post-2000 Trends in the United States

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  • Ajit Zacharias
  • Thomas Masterson
  • Fernando Rios-Avila

Abstract

Ajit Zacharias, Thomas Masterson, and Fernando Rios-Avila update the Levy Institute Measure of Economic Well-Being (LIMEW) for US households for the period 2000-13. The LIMEW--which comprises base income, income from wealth, net government expenditures, and the value of household production--is aimed at achieving a more comprehensive understanding of trends in living standards. This policy brief analyzes developments during this period at all levels of the LIMEW distribution, with a particular focus on the significant role played by net government expenditures. The overall trend for 2000-13 was one of historic stagnation in the growth of economic well-being for US households, but an examination of the different components of the measure reveals significant shifts taking place behind this headline trend. A companion document, the Supplemental Tables, features additional data referenced in the policy brief.

Suggested Citation

  • Ajit Zacharias & Thomas Masterson & Fernando Rios-Avila, 2018. "Stagnating Economic Well-Being and Unrelenting Inequality: Post-2000 Trends in the United States," Economics Public Policy Brief Archive ppb_146, Levy Economics Institute.
    • Handle: RePEc:lev:levppb:ppb_146
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    References listed on IDEAS

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    1. Henry S. Farber & Robert G. Valletta, 2015. "Do Extended Unemployment Benefits Lengthen Unemployment Spells?: Evidence from Recent Cycles in the U.S. Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 50(4), pages 873-909.
    2. Andreas I. Mueller & Jesse Rothstein & Till M. von Wachter, 2016. "Unemployment Insurance and Disability Insurance in the Great Recession," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 445-475.
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    5. Congressional Budget Office, 2016. "The Distribution of Household Income and Federal Taxes, 2013," Reports 51361, Congressional Budget Office.
    6. David H. Autor & Mark G. Duggan, 2006. "The Growth in the Social Security Disability Rolls: A Fiscal Crisis Unfolding," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 71-96, Summer.
    7. Edward N. Wolff & Ajit Zacharias & Thomas Masterson, 2012. "Trends In American Living Standards And Inequality, 1959–2007," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 197-232, June.
    8. Robert Valletta, 2015. "Erratum: Recent extensions of U.S. unemployment benefits: search responses in alternative labor market states," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-1, December.
    9. Philip Armour & Richard V. Burkhauser & Jeff Larrimore, 2013. "Deconstructing Income and Income Inequality Measures: A Crosswalk from Market Income to Comprehensive Income," American Economic Review, American Economic Association, vol. 103(3), pages 173-177, May.
    10. repec:cbo:report:513611 is not listed on IDEAS
    11. Timothy M. Smeeding & Jeffrey P. Thompson, 2011. "Recent Trends in Income Inequality," Research in Labor Economics, in: Who Loses in the Downturn? Economic Crisis, Employment and Income Distribution, pages 1-50, Emerald Group Publishing Limited.
    12. Ajit Zacharias & Thomas N. Masterson & Fernando Rios-Avila, 2018. "The Sources and Methods Used in the Creation of the Levy Institute Measure of Economic Well-Being for the United States, 1959-2013," Economics Working Paper Archive wp_912, Levy Economics Institute.
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    Cited by:

    1. Luiza Nassif-Pires & Laura de Lima Xavier & Thomas Masterson & Michalis Nikiforos & Fernando Rios-Avila, 2020. "Pandemic of Inequality," Economics Public Policy Brief Archive ppb_149, Levy Economics Institute.

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