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Accounting for U nited S tates Household Income Inequality Trends: The Changing Importance of Household Structure and Male and Female Labor Earnings Inequality
Author(s) -
Larrimore Jeff
Publication year - 2014
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/roiw.12043
Subject(s) - economics , earnings , inequality , economic inequality , labour economics , demographic economics , household income , geography , mathematical analysis , mathematics , accounting , archaeology
Using a shift‐share analysis on M arch CPS data, this paper estimates the degree to which changes in labor earnings, employment, and marriage patterns account for household income inequality growth in the U nited S tates since 1979. The factors contributing to the rapid rise in income inequality in the 1980s differ substantially from those contributing to its slower increase since that time. Unlike findings for the 1980s when changes in the correlation of spouses' earnings accounted for income inequality growth, this factor is no longer a major contributor toward its continued increase. Additionally, the 2000s business cycle is the first full business cycle in at least 30 years where changes in earnings of male household heads accounted for declines in income inequality. Instead, the continued growth in income inequality in the 2000s was accounted for primarily by increases in female earnings inequality and declines in both male and female employment.