Divergent Inequalities - Theory and Empirical Results (Revised Edition)
Widely used summary measures of inequality or the "disappearing middle class" are potentially misleading. Divergences between evidence cited and conclusions drawn include failing to distinguish the concepts of inequality and polarization, and using scalar oinequalityo measures which are not consistent with rankings based on Lorenz curves. In addition, inappropriate claims about trends in inequality can arise from focusing on only a sub-population such as full-time male workers, and failing to account for sampling variability. These divergences are illustrated using Canadian data on labour incomes over the 1967 to 1994 period.
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- John A. Bishop & John P. Formby & W. James Smith, 1993. "International Comparisons of Welfare and Poverty: Dominance Orderings for Ten Countries," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 707-26, August.
- Beach, C.M., 1988. "The "Vanishing" Middle Class?: Evidence and Explanations," Papers 1988-5, Queen's at Kingston - Sch. of Indus. Relat. Papers in Industrial Relations.
- Steven J. Davis, 1992.
"Cross-Country Patterns of Change in Relative Wages,"
in: NBER Macroeconomics Annual 1992, Volume 7, pages 239-300
National Bureau of Economic Research, Inc.
- Steven J. Davis, 1992. "Cross-Country Patterns of Change in Relative Wages," NBER Working Papers 4085, National Bureau of Economic Research, Inc.
- James Foster & Michael Wolfson, 2010. "Polarization and the decline of the middle class: Canada and the U.S," Journal of Economic Inequality, Springer, vol. 8(2), pages 247-273, June.
- Wolfson, Michael C, 1994. "When Inequalities Diverge," American Economic Review, American Economic Association, vol. 84(2), pages 353-58, May.
- 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.
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