American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Measuring the Trends in Inequality of Individuals and Families: Income and Consumption
American Economic Review
vol. 103,
no. 3, May 2013
(pp. 184–88)
Abstract
We present evidence on the level of and trend in inequality from 1985-2010 in the United States, using disposable income and consumption for a sample of individuals from the Consumer Expenditure (CE) Survey. Differing from the findings in other recent research, we find that the trends in income and consumption inequality are broadly similar between 1985 and 2006, but diverge during the Great Recession with consumption inequality decreasing and income inequality increasing. Given the differences in the trends in inequality in the last four years, using both income and consumption provides useful information.Citation
Fisher, Jonathan D., David S. Johnson, and Timothy M. Smeeding. 2013. "Measuring the Trends in Inequality of Individuals and Families: Income and Consumption." American Economic Review, 103 (3): 184–88. DOI: 10.1257/aer.103.3.184Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- D63 Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse