IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Not a Hollowing Out, a Stretching: Trends in U.S. Nonmetro Wage Income Distribution, 1961-2003

  • Angle, John

Much of the U.S. labor economics literature asserts that U.S. wage income inequality increased in the last half of the 20th century. These papers point to two trends: 1) the increasing dispersion in U.S. wage incomes, and 2) the rapid growth in the relative frequency of large wage incomes of fixed size in constant dollar terms. A subset of the labor economics literature interprets these trends as a hollowing out of the wage income distribution. A hollowing out would yield fewer middling wage incomes. Since nonmetro wage incomes have, historically, been smaller than metro wage incomes, a hollowing out might disproportionately displace nonmetro wage incomes into the left mode of the hollowed out distribution, that of small wage incomes. However, there was no hollowing out of the nonmetro wage income distribution between 1961 and 2003. While trends #1 and #2 exist in U.S. nonmetro wage income data, they are aspects of the stretching of the distribution of nonmetro wage incomes to the right over larger wage incomes as all its percentiles increased between 1961 and 2003. This stretching means that all nonmetro wage income percentiles increase simultaneously with greater proportional growth in the smaller percentiles. The literature focused on the greater absolute gains of the larger percentiles and took them as evidence of growing inequality. This paper shows for nonmetro wage incomes in the U.S. that those gains are but one aspect of the stretching of the distribution and that other aspects of this transformation might as easily be taken as evidence of growing equality.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://mpra.ub.uni-muenchen.de/10111/1/MPRA_paper_10111.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10111.

as
in new window

Length:
Date of creation: Feb 2006
Date of revision: 18 Aug 2008
Handle: RePEc:pra:mprapa:10111
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: https://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. E. Samanidou & E. Zschischang & D. Stauffer & T. Lux, 2007. "Agent-based Models of Financial Markets," Papers physics/0701140, arXiv.org.
  2. Coder, John & Rainwater, Lee & Smeeding, Timothy M, 1989. "Inequality among Children and Elderly in Ten Modern Nations: The United States in an International Context," American Economic Review, American Economic Association, vol. 79(2), pages 320-24, May.
  3. Dooley, Martin D & Gottschalk, Peter, 1984. "Earnings Inequality among Males in the United States: Trends and the Effect of Labor Force Growth," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 59-89, February.
  4. Esteban, Joan & Ray, Debraj, 1999. "Conflict and Distribution," Journal of Economic Theory, Elsevier, vol. 87(2), pages 379-415, August.
  5. Esteban, J. & Ray, D., 1993. "On the Measurement of Polarization," UFAE and IAE Working Papers 221.93, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  6. Danziger, Sheldon & Gottschalk, Peter, 1986. "Do Rising Tides Lift All Boats? The Impact of Secular and Cyclical Changes on Poverty," American Economic Review, American Economic Association, vol. 76(2), pages 405-10, May.
  7. Leslie Mccall, 2000. "Explaining levels of within-group wage inequality in U.S. labor markets," Demography, Springer, vol. 37(4), pages 415-430, November.
  8. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
  9. Kahn, Lawrence M, 1998. "Collective Bargaining and the Interindustry Wage Structure: International Evidence," Economica, London School of Economics and Political Science, vol. 65(260), pages 507-34, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:10111. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.