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Testing the significance of income distribution changes over the 1980s business cycle: a cross-national comparison

✍ Scribed by Richard V. Burkhauser; Amy Crews Cutts; Mary C. Daly; Stephen P. Jenkins


Publisher
John Wiley and Sons
Year
1999
Tongue
English
Weight
234 KB
Volume
14
Category
Article
ISSN
0883-7252

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✦ Synopsis


Using kernel density estimation we describe the distribution of household size-adjusted real income and how it changed over the business cycle of the 1980s in the United States and the United Kingdom. We con®rm previous studies that show income inequality increased in the two countries and the middle of the distribution was squashed down. Using a series of statistical tests, however, we ®nd that while the mass in both tails of the distribution increased signi®cantly in both countries over the period, by far the greatest gains were in the upper tail.