Disaggregating the Effect of the Business Cycle on the Distribution of Income
This paper disaggregates total household income into a complete set of components and studies the comparative cyclicality of these components to economic growth. Comparisons of the relative responsiveness to GNP growth of wages, hours of work, and total labor market income of heads and wives, and transfer income sources of households are made across income, race, sex and age groups. This provides a picture of the channels by which economic growth produces income change. Significant differences in elasticities are found to exist both between different income components and between different population groups for the same components. The narrowing income distribution in times of high growth occurs primarily because of large elasticities on head's labor market income among the poor. Both wages and hours show evidence of cyclicality. The labor market earnings of women -- both wives and household heads -- are far less responsive to growth. Cyclicality in transfer income varies enormously between population groups and by type of transfer.
(This abstract was borrowed from another version of this item.)
|Date of creation:||May 1985|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 609 258-4041
Fax: 609 258-2907
Web page: http://www.irs.princeton.edu/
More information through EDIRC
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.:
- Altonji, Joseph & Ashenfelter, Orley, 1980. "Wage Movements and the Labour Market Equilibrium Hypothesis," Economica, London School of Economics and Political Science, vol. 47(187), pages 217-45, August.
- Hirsch, Barry T, 1980. "Poverty and Economic Growth: Has Trickle Down Petered Out?," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 151-58, January.
- Thornton, James R & Agnello, Richard J & Link, Charles R, 1978. "Poverty and Economic Growth: Trickle Down Peters Out," Economic Inquiry, Western Economic Association International, vol. 16(3), pages 385-94, July.
- Geary, Patrick T & Kennan, John, 1982. "The Employment-Real Wage Relationship: An International Study," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 854-71, August.
- Rebecca M. Blank & Alan S. Blinder, 1985. "Macroeconomics, Income Distribution, and Poverty," NBER Working Papers 1567, National Bureau of Economic Research, Inc.
- Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
- Rebecca M. Blank, 1987.
"Disaggregating the Effect of the Business Cycle on the Distribution of Income,"
NBER Working Papers
2397, National Bureau of Economic Research, Inc.
- Blank, Rebecca M, 1989. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," Economica, London School of Economics and Political Science, vol. 56(222), pages 141-63, May.
- Rebecca Blank, 1985. "Disaggregating the Effect of the Business Cycle on the Distribution of Income," Working Papers 569, Princeton University, Department of Economics, Industrial Relations Section..
- Michael Ransom, 1982. "Estimating Family Labor Supply Models Under Quantity Constraints," Working Papers 530, Princeton University, Department of Economics, Industrial Relations Section..
- Bils, Mark J, 1985. "Real Wages over the Business Cycle: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 666-89, August.
- Charles M. Beach, 1974.
"Cyclical Sensitivity of Aggregate Income Inequality,"
162, Queen's University, Department of Economics.
- Beach, Charles M, 1977. "Cyclical Sensitivity of Aggregate Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 56-66, February.
- Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
When requesting a correction, please mention this item's handle: RePEc:pri:indrel:dsp012227mp659. 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: (David Long)
If references are entirely missing, you can add them using this form.