Income Inequality in the 1990s: Re-Forging a Lost Relationship?
Using data from March Current Population Surveys we find gains from economic growth over the 1990s business cycle (1989-2000) were more equitably distributed than over the 1980s business cycle (1979-1989) using summary inequality measures as well as kernel density estimations. The entire distribution of household size-adjusted income moved upwards in the 1990s with profound improvements for African Americans, single mothers and those living in households receiving welfare. Most gains occurred over the growth period 1993-2000. Improvements in average income and income inequity over the latter period are reminiscent of gains seen in the first three decades after World War II.
|Date of creation:||Jun 2004|
|Note:||We thank J.S. Butler and Mary C. Daly for their comments on earlier versions of this paper.|
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