The factors underlying the rise in U.S. income inequality since the mid-1970s are examined. The results suggest that the trend increase in income inequality has not been related to macroeconomic developments, such as income growth or import penetration, but that the income distribution is...

We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures....