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Wiley InterScience | ||
  Review of Income and WealthVolume 52 Issue 1, Pages 127 - 144 Published Online: 24 Feb 2006 Journal compilation © 2009 International Association for Research in Income and Wealth Published on behalf of the International Association for Research in Income and Wealth
Abstract | References | Full Text: PDF (Size: 191K) | Related Articles | Citation Tracking  EARNINGS INEQUALITY IN USA, 1969–99: COMPARING INEQUALITY USING EARNINGS EQUATIONS Note: The author wishes to thank James Davies, Gary Fields, Ira Gang, the participants in seminars at University of Munich, IZA, and the Southern Economic Association (2001) and two anonymous referees. Special thanks to the editors, Bart van Ark and Stephan Klasen, who provided encouragement and showed great patience. Part of the work was done while the author visited the Department of Economics, Rutgers University. Copyright 2006 Blackwell Publishing Ltd ABSTRACTA simple decomposition method using an earnings equation is proposed by synthesizing two decomposition methodologies, those of Juhn, Murphy, and Pierce (1993) and Fields (2003), in order to study changes in earnings inequality in America during the last three decades in the 20th century. The proposed method enables us to compute both aggregate and detailed decompositions of changes in earnings inequality. The decomposition of earnings inequality change during the last three decades in 20th century shows that the increase in earnings inequality in America was caused by changes in the wage structure and the distribution of unobservables. The premium to education contributes substantially to the widening of earnings inequality during the 1980s and 1990s. A decreasing male wage premium contributes to leveling earnings inequality. |
