Cyclical Impacts on the Distribution of Income
This paper advances a new method for analyzing short-run cyclical changes in income concentration in the size distribution of income. Rather than focussing on Gini coefficients or variance, this approach involves analyzing fluctuations in individual quantile income levels for each of seven age groups of adult males. Contrary to Schultz'(1969) negative results for the United States, there appears to be a definite pattern of cyclical fluctuation in income concentration. In particular, the bottom decile income levels for prime aged males are estimated to rise relative to median incomes by ten to fifteen percent during expansions, and to fall by an equivalent amount during recessions.
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