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We demonstrate that a rank-preserving transfer from a richer individual to a poorer individual can exacerbate income inequality (when inequality is measured by the Gini coefficient). This happens when individuals' preferences depend negatively not only on work time (effort) but also on low...
Persistent link: https://www.econbiz.de/10009680434
What accounts for the growth of US top income inequality? This paper proposes a hierarchical redistribution hypothesis …; and (4) the "fattening" of the entire income distribution tail. This result supports the hierarchical redistribution … hypothesis. It is also consistent with the available empirical evidence on within-firm income redistribution. …
Persistent link: https://www.econbiz.de/10011880804
Die Betrachtung der Gini-Koeffizienten sowohl vor als auch nach Umverteilung zeigt, dass die Verteilung der …, die den Zielvorgaben für die Einkommensverteilung zugrunde liegen, und argumentiert auf der Grundlage der empirischen … Ergebnisse, dass weder klare Wahl- oder Parteizyklen in den Daten der Einkommensverteilung in den USA zu erkennen sind, noch dass …
Persistent link: https://www.econbiz.de/10014566149
We present a new series for top income concentrations in the United States, using a consistent data construction methodology for the entire range of available data. This is meant to connect efforts that have separately considered pre-1960 and post-1960 inequality measures. Our series improves...
Persistent link: https://www.econbiz.de/10014343887
This study validates the microeconomic model defining the evolution of personal incomes in the U.S. Because of a large portion of population not reporting any income, any comprehensive modeling of the overall personal income distribution (PID) is complicated. Age-dependent PIDs allow overcoming...
Persistent link: https://www.econbiz.de/10012708780
We provide an analytical framework within which changes in income inequality over time are related to the pattern of income growth across the income range, and the reshuffling of individuals in the income pecking order. We use it to explain how it was possible both for "the poor" to have fared...
Persistent link: https://www.econbiz.de/10011439136
Persistent link: https://www.econbiz.de/10013436464
Differences in individual wealth holdings are widely viewed as a driving force of economic inequality. However, as this finding relies on cross-section data, we may confuse older with wealthier. We propose a new method to adjust for age effects in cross-sections, which eliminates transitory...
Persistent link: https://www.econbiz.de/10011635021
This paper analyzes the microeconomic sources of wage inequality in the United States from 1967-2012. Decomposing inequality into factors categorized by degree of personal responsibility, we find that education is able to explain more than twice as much of inequality today as 45 years ago....
Persistent link: https://www.econbiz.de/10010409801
There is a vast literature on the selection of an appropriate index of income inequality and on what desirable properties such a measure (or index) should contain. The Gini index is, of course, the most popular. There is a concurrent literature on the use of hypothetical statistical...
Persistent link: https://www.econbiz.de/10011773015