Barlevy, Gadi; Tsiddon, Daniel - Federal Reserve Bank of Chicago - 2004
-run trends and cyclical variation in earnings inequality. We develop a model in which cyclical and trend inequality are related … decreasing. In support of this prediction, we present evidence that during the first half of the 20th Century when earnings … inequality was generally declining, earnings disparities indeed appeared to fall more rapidly in downturns, at least among …