On the Evolution of Income Inequality in the United States by Kevin A. Bryan and Leonardo Martinez
Income inequality in the United States has received considerable attention in recent policy debates. Richmond Fed economists Kevin A. Bryan and Leonardo Martinez find that income inequality has risen since the 1960s, and that this is explained mainly by increases in inequality at the top of the income distribution. In addition, they document periods characterized by a decline in real income for lower income groups. Bryan and Martinez also explain that welfare inequality may have increased less than income inequality and, in fact, may actually have decreased, due to changing trends in leisure consumption.
You can find the full text of this article and others in the latest issue of Economic Quarterly at the Bank's Web site.
Also in the Spring 2008 issue:
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