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How the Distribution of After-Tax Income Changed Over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan

  • Richard Burkhauser

    (Cornell University)

  • Takashi Oshio

    (Cornell University)

  • Ludmila Rovba

    (Cornell University)

We find that, over their 1990s business cycles, the entire distribution of after-tax household size-adjusted income moved to the right in the United States and Great Britain while inequality declined. In contrast, Germany and Japan had less income growth, a rise in inequality and a decline in the middle mass of their distributions that spread mostly to the right, much like the United States experienced over its 1980s business cycle. In the United States and Japan, younger persons fared relatively better than older persons while the opposite was the case in Great Britain and Germany.

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Paper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp145.

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Length: 54 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:mrr:papers:wp145
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  1. Richard V. Burkhauser & Timothy M. Smeeding & Joachim Merz, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," FFB-Discussionpaper 12, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  2. Stefan Bach & Giacomo Corneo & Viktor Steiner, 2007. "From Bottom to Top: The Entire Distribution of Market Income in Germany, 1992 - 2001," Discussion Papers of DIW Berlin 683, DIW Berlin, German Institute for Economic Research.
  3. Feng, Shuaizhang & Burkhauser, Richard V. & Butler, J.S., 2006. "Levels and Long-Term Trends in Earnings Inequality: Overcoming Current Population Survey Censoring Problems Using the GB2 Distribution," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 57-62, January.
  4. Michael Förster & Mark Pearson, 2002. "Income Distribution and Poverty in the OECD Area: Trends and Driving Forces," OECD Economic Studies, OECD Publishing, vol. 2002(1), pages 7-38.
  5. Richard V. Burkhauser & Ludmila Rovba, 2006. "Income Inequality in the 1990s: Comparing the United States, Great Britain and Germany," Discussion Papers of DIW Berlin 576, DIW Berlin, German Institute for Economic Research.
  6. Kenneth A. Couch & Mary C. Daly, 2004. "The improving relative status of black men," Working Paper Series 2004-02, Federal Reserve Bank of San Francisco.
  7. Toshiaki Tachibanaki, 2005. "Confronting Income Inequality in Japan: A Comparative Analysis of Causes, Consequences, and Reform," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201585, June.
  8. Richard V. Burkhauser & Shuaizhang Feng & Stephen P. Jenkins, 2009. "Using The P90-P10 Index To Measure U.S. Inequality Trends With Current Population Survey Data: A View From Inside The Census Bureau Vaults," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 166-185, 03.
  9. repec:tpr:qjecon:v:118:y:2003:i:1:p:1-39 is not listed on IDEAS
  10. Burkhauser, Richard V, et al, 1999. "Testing the Significance of Income Distribution Changes over the 1980s Business Cycle: A Cross-National Comparison," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 253-72, May-June.
  11. Lynn Karoly & Gary Burtless, 1995. "Demographic change, rising earnings inequality, and the distribution of personal well-being, 1959–1989," Demography, Springer, vol. 32(3), pages 379-405, August.
  12. Richard V. Burkhauser & Kenneth A. Couch & Andrew Houtenville & Ludmila Rovba, 2004. "Income Inequality in the 1990s: Re-Forging a Lost Relationship?," Working papers 2004-11, University of Connecticut, Department of Economics.
  13. Biewen, Martin, 2000. "Income Inequality in Germany during the 1980s and 1990s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 1-19, March.
  14. Burkhauser, Richard V. & Butler, J. S. & Feng, Shuaizhang & Houtenville, Andrew J., 2004. "Long term trends in earnings inequality: what the CPS can tell us," Economics Letters, Elsevier, vol. 82(2), pages 295-299, February.
  15. repec:ese:iserwp:2007-14 is not listed on IDEAS
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