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Income Polarization And Income Inequality In Connecticut During The Great Recession, A. E. Rodriguez, Scott J. Lane

Economics & Business Analytics Faculty Publications

In this paper, using Bureau of the Census family income data we formally examine the income polarization hypothesis for the State of Connecticut. We ask and answer two questions. First, did the polarization of income deteriorate over the Great Recession years of 2007-2009? If the observed clustering around two opposite poles that existed in Connecticut prior to the Great Recession increased between the years immediately prior to the recession and immediately after (2006-2010) it would be consistent with the perception that the size of the middle class decreased over this period. Second, have income polarization and income inequality fared significantly …