Whereas most research on inequality has focused on wages, the first part of this book shows how changes in the distribution of wages combine with changes in hours and weeks of work to affect annual earnings among workers. In clear language, she provides an overview of how and why the level and distribution of income and wealth has changed since 1979, sets this situation within its historical context, and investigates the forces that are driving it. The book includes some surprising findings—for example, that per-person income has risen sharply among almost all social groups, even as income has become more unequally distributed. In clear language, she provides an overview of how and why the level and distribution of income and wealth has changed since 1979, sets this situation within its historical context, and investigates the forces that are driving it. This, in turn, occurred because of increases in wage inequality.
Smeeding, University of Wisconsin-Madison and 147;Rebecca Blank has written the authoritative guide to the basic data describing U. Among other factors, Blank looks closely at changes within families, including womenand 8217;s increasing participation in the work force. A Broader Look at Changing Inequality 2. This development has made income distribution and income inequality a topic of substantial interest among researchers and policy analysts who focus on economic and social issues in the United States. Economic mobility is often viewed as a measure of openness and opportunity in a society. Changes in Income and Earnings 1.
In her highly accessible book, Rebecca Blank sets out to empirically answer this question. This suggests that higher inequality is likely to remain a feature of the economic landscape in the United States for many decades to come. Changing Inequality in Total Income and Its Components 4. It is not clear what triggers changes in the trends toward or away from long-term inequality. Details of the Chapter 4 Simulations Appendix 4.
Economic change interacts with the political economy and the set of rules, regulations, and policies enforced within the economy. The Bridge over the Racial Divide: Rising Inequality and Coalition Politics, by William Julius Wilson 3. This is true across the income distribution, so that the whole distribution has shifted upward even as it has spread out and become more unequal. Most recently, she coedited Insufficient Funds: Savings, Asset, Credit and Banking Among Low-Income Households and Working and Poor: How Economic and Policy Changes are Affecting Low-Wage Workers. Incomes among those in the middle of the distribution have risen substantially, although there has been an increase in the share of persons with very low incomes. Much of the quantitative research on the relationship between inequality and growth suggests that the relationship is relatively weak and that other factors have greater effects on growth Barro, 2000. Missing Persons: A Critique of Personhood in the Social Sciences, by Mary Douglas and Steven Ney 2.
Berkeley, University of California Press, 2011. I describe the groups that I am looking at and the years over which I study changes in inequality. Her analysis of the trends that drive inequality and 150; changes in the wage structure, work behavior and family structure and 150; will be economic researchersand 8217; go-to source for many years to come. The book includes some surprising findings--for example, that per-person income has risen sharply among almost all social groups, even as income has become more unequally distributed. Bounded Rationality and Politics, by Jonathan Bendor 7. However, I am interested in wealthier countries that have effectively functioning governments, high levels of human capital, and technologically advanced physical capital. In fact, we have chosen to adopt a number of policies that have done this, such as the expansion of the Earned Income Tax Credit to low-wage earners in low-income families with children.
It is well known that inequality has risen sharply over the last three decades. Regardless of its effect on social discontent, areas with higher inequality appear to have lower rates of self-reported happiness Glaeser, Resseger, and Tobio, 2008. Finally, rising economic inequality may affect civic and social behavior outside the realm of economics. About three-quarters of the increase in inequality in the overall distribution of income occurred because of increases in the inequality of income components-primarily, increases in annual earnings inequality. He reports on experiments showing that as rewards become more unequal, the efforts of those at the bottom are reduced because they believe they have no chance of achieving these rewards. While some are concerned about the effects of widening inequality, others may believe that wide differences in economic outcomes are, per se, undesirable.
The results of this detailed analysis indicate that changes in family composition and family size account for about 15 percent of the rise in U. Income Components by Decile Appendix 3. Blank offers the first comprehensive analysis of an economic trend that has been reshaping the United States over the past three decades: rapidly rising income inequality. Her book considers what can be done to address this trend, and also explores the question: why should we be concerned about this phenomenon? The primary goal of the book is to describe shifts in the distribution of income. Her focus is on ideal types, which means that there is some inevitable messiness in the details, but she makes a convincing case for the importance of the individual in these critical decisions, especially the need to calibrate ends and means. The second part of this book examines the forces that drive changes in inequality. Much of the quantitative research on the relationship between inequality and growth suggests that the relationship is relatively weak and that other factors have greater effects on growth Barro, 2000.
In recent years, a growing chorus has sounded the alarm about rising income inequality in the United States. A high share of the growth in single-headed families is among single-mother families. Whereas mobility reductions may have limited short-run effects, over time they can intensify economic and social stratification. I also look at demographic changes that would increase marriage and reduce the number of single persons and single-headed families in the population. Many readers may be surprised at the extent to which per person income has risen for nonelderly adults in the United States. These changes, however, are not due to increases in wages for many persons, but are due to increases in the work effort within families, and particularly by women.