Income Distribution Commons^™

Salary Inequality In The Nba: Changing Returns To Skill Or Wider Skill Distributions?, Jonah F. Breslow

CMC Senior Theses

In this paper, I examine trends in salary inequality from the 1985-86 NBA season to the 2015-16 NBA season. Income and wealth inequality have been extremely important issues recently, which motivated me to analyze inequality in the NBA. I investigated if salary inequality trends in the NBA can be explained by either returns to skill or widening skill distributions. I used Pareto exponents to measure inequality levels and tested to see if the levels changed over the sample. Then, I estimated league-wide returns to skill. I found that returns to skill have not significantly changed, but variance in skill has …

The Effects Of Globalization On An Emerging Economy: The Case Of South Africa, Oluwasheyi S. Oladipo

Dissertations, Theses, and Capstone Projects

This dissertation examines how globalization influences selected aspects of an emerging economy, using South Africa as a case study. The dissertation consists of three chapters: two microeconomic studies and one macroeconomic paper on the effects of globalization on some of the factors affecting economic growth. One micro paper explores the impacts of openness on inequality (Chapter 1), another investigates the impacts of trade liberalization on manufacturing sector wages (Chapter 2), and the macro study, which is the final chapter, examines the effects of inflation targeting on exchange rate pass through to domestic prices (Chapter 3).

In 1994, apartheid ended in …

Evaluating Stolper-Samuelson: Trade Liberalization & Wage Inequality In India, Anthony M. Michael

Master's Theses

This paper tests the predictions of the Stolper-Samuelson Theorem in India after it underwent major trade reform in 1991. Using industry level tariff data, the paper empirically examines trade liberalization’s effect on the wages of high-skilled labor relative to low skilled labor within firms. The study finds empirical evidence to support growing wage differentials within firms, which contradict the predictions of the Stolper-Samuelson Theorem. Additionally, when controlling for firm size and the effects of the global financial crisis, these results remain robust. Finally, the paper explores training and welfare and R&D’s effect on the wage differentials within firms, finding a …

Inequality And Financialization, Oscar C. Soons

Senior Honors Projects

This paper analyzes economic inequality in the United States and makes a connection between rising inequality and “Financialization” since the 1970’s. I provide an overview of how and why income and wealth inequality have changed over time. The increase in inequality since the 1970’s is correlated with an increase in Financialization, measured by a Financialization index that I created. Financialization, defined as the increasing size, power and influence of the financial sector in the economy and politics, has changed the economic and political landscape in the United States in a way that increases economic inequality.

Trashé Designs: A Social Enterprise, Cara Walden

MA IDS Thesis Projects

During my years in graduate school, my understanding of economic inequality has further expanded. While my experience in the Peace Corps and Nepal allowed me to see it in real life, my time in school has allowed me to ground these experiences in academic literature. By means of an action research project, my goal is to create economic opportunity for the HIV/AIDS community in Chiang Mai, Thailand, through the creation of the social enterprise Trashé Designs. A social enterprise is a way to address a social challenge with a market-based solution. My social enterprise, Trashé Designs, uses recycled materials to …

Conditional Cash Transfers And Their Effect On Poverty, Inequality, And School Enrollment: The Case Of Mexico And Latin America, Maria Romano

CMC Senior Theses

Over the past two decades, conditional cash transfer (CCT) has become one of the most widespread approaches to social development in Latin America. Spurred in large part by the evident and immediate success of Mexico’s CCT initiative, a multitude of countries began to invest heavily in this strategy hoping to reduce poverty and inequality in the short and long run. This paper examines the relationship between CCT program breadth and poverty, inequality, and secondary school enrollment over a thirteen year span in order to determine whether or not programs with the largest coverage were the most efficient. This question is …

Domestic Outsourcing Reduces Wages And Contributes To Rising Inequality, Johannes Schmieder, Deborah Goldschmidt

Employment Research Newsletter

No abstract provided.

The Rise Of Domestic Outsourcing And The Evolution Of The German Wage Structure, Deborah Goldschmidt, Johannes Schmieder

Upjohn Institute Working Papers

The nature of the relationship between employers and employees has been changing over the last three decades, with firms increasingly relying on contractors, temp agencies, and franchises rather than hiring employees directly. We investigate the impact of this transformation on the wage structure by following jobs that are moved outside of the boundary of lead employers to contracting firms. For this end we develop a new method for identifying outsourcing of food, cleaning, security, and logistics services in administrative data using the universe of social security records in Germany. We document a dramatic growth of domestic outsourcing in Germany since …

Wealthy, But Unequal: The Anomaly Of Inequality In The United States, Joseph Puleo

Political Analysis

No abstract provided.

The Federal Reserve And A Cascade Of Failures: Inequality, Cognitive Narrowness And Financial Network Theory, Emma Coleman Jordan

Georgetown Law Faculty Publications and Other Works

The recent financial crisis hollowed out the core of American middle-class financial stability. In the wake of the financial crisis, household net worth in the U.S. fell by 24%, for a loss of $16 trillion. Moreover, retirement accounts, the largest class of financial assets, took a steep drop in value, as did house prices, and these two classes of assets alone represent approximately 43% of all household wealth. The losses during the principal crisis years, 2007–2009, were devastating, “erasing almost two decades of accumulated prosperity,” in the words of a 2013 report. By the Federal Reserve. Beyond these direct household …

Antitrust, Competition Policy, And Inequality, Jonathan B. Baker, Steven C. Salop

Georgetown Law Faculty Publications and Other Works

Economic inequality recently has entered the political discourse in a highly visible way. This political impact is not a surprise. As the U.S. economy has begun to recover from the Great Recession since mid-2009, economic growth has effectively been appropriated by those already well off, leaving the median household less well off. The serious economic, political and moral issues raised by inequality can be addressed through a panoply of public policies including competition policy, the focus of this article. The article describes the channels through which market power contributes to inequality, and sets forth a range of possible antitrust policy …

Income, Program Participation, Poverty, And Financial Vulnerability: Research And Data Needs, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

The aim of this paper is to assess the adequacy of the data infrastructure in the United States to meet future research and policy evaluation needs as it pertains to income, program participation, poverty, and financial vulnerability. I first discuss some major research themes that are likely to dominate policy and scientific discussions in the coming decade. This list includes research on the long-term consequences of income inequality and mobility, issues of transfer-program participation and intergenerational dependence, challenges with poverty measurement and poverty persistence, and material deprivation. I then summarize what information we currently collect in the U.S. that is …

Macroeconomic Effects And Microeconomic Determinants Of Fertility, Maria R. Apostolova-Mihaylova

Theses and Dissertations--Economics

This dissertation focuses on the relationship between the education-based fertility gap and economic growth and on policy as a determinant of fertility.

In the first essay I evaluate the impact of differential fertility (the difference between fertility rates of women with high educational attainment and women with low educational attainment) on economic growth by accounting for critical marginal effects and the general level of educational attainment in a given country. I also examine the possibility that this effect varies based on level of inequality and income levels. I find that for a less developed country with high income inequality, higher …

Income Inequality In U.S. Metropolitan Areas: Which Areas Have The Greatest Inequality And Why?, C. Peterson Compton

Electronic Theses and Dissertations

In recent years, much focus has been placed on the high and growing level of income inequality in the United States. This composition begins to fill a void in the existing literature by examining specific urban areas that have particularly high levels of inequality and the characteristics that factor into inequality. In this paper, I construct a qualitative model for a particularly unequal metropolitan area. I then apply the model to a set of U.S. metros that are among the most unequal in the country and share a particular set of characteristics consistent with the model.

Dynamic Poverty Decomposition Analysis: An Application To The Philippines, Tomoki Fujii

Research Collection School Of Economics

In this paper, we propose a new method of poverty decomposition. Our method remedies the shortcomings of existing methods and has some desirable properties such as time-reversion consistency and subperiod additivity. It integrates the existing methods of growth-redistribution decomposition and sector-based decomposition, because it allows us to decompose poverty change into growth and redistribution components for each group (e.g. regions or sectors) in the economy. We extend our method to have six components and provide an empirical application to the Philippines for the period 1985-2009.

Recent Developments In Antipoverty Policies In The United States, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

I survey recent developments in antipoverty policy in the United States over the past decade and examine how the safety net and tax system affects poverty and its correlates using data from the 2000 to 2010 waves of the Current Population Survey-Annual Social and Economic Supplement. Unlike the 1980s and 1990s, and until the health care overhaul in 2009, the first decade of the 21st Century was relatively tepid in terms of major transfer policy reforms. However, real spending on most major social program increased significantly, and in some cases doubled or tripled, in response to demographic shifts and the …

Poverty, Inequality And Cost Of Living Differences, Enrico Moretti

University of Kentucky Center for Poverty Research Discussion Paper Series

Metropolitan areas in the US are characterized by enormous differences in average income, earnings, and factor productivity. The income of individuals located in metropolitan areas at the top of the income distribution is more than double the income of observationally similar individuals located in metropolitan areas at the bottom of the distribution. These differences reflect, at least in part, variation in local productivity.

Notes On Poverty Traps And Appalachia, Steven Durlauf

University of Kentucky Center for Poverty Research Discussion Paper Series

In these notes, I provide some general ideas on how to conceptualize poverty traps and speculate on their applicability to understanding Appalachian poverty. My goal is to stimulate thinking on Appalachia that exploits contemporary perspectives in economics on the sources of persistent poverty and inequality. To do this, I focus on both the theory of poverty traps as well as issues in the econometric assessment of their empirical salience.

Domestication Alone Does Not Lead To Inequality: Intergenerational Wealth Transmission Among Horticulturalists, Michael Gurven, Monique Borgerhoff Mulder, Paul L. Hooper, Hillard Kaplan, Robert Quinlan, Rebecca Sear, Eric Schniter, Christopher Von Rueden, Samuel Bowles, Tom Hertz, Adrian Bell

Psychology Faculty Articles and Research

We present empirical measures of wealth inequality and its intergenerational transmission among four horticulturalist populations. Wealth is construed broadly as embodied somatic and neural capital, including body size, fertility and cultural knowledge, material capital such as land and household wealth, and relational capital in the form of coalitional support and field labor. Wealth inequality is moderate for most forms of wealth, and intergenerational wealth transmission is low for material resources and moderate for embodied and relational wealth. Our analysis suggests that domestication alone does not transform social structure; rather, the presence of scarce, defensible resources may be required before inequality …

Strategies For Improving Economic Mobility Of Workers: Bridging Research And Practice, Maude Toussaint-Comeau Editor, Bruce D. Meyer Editor

Upjohn Press

The contributors to this book provide a provocative assessment of the effectiveness of various policies and practices designed to help disadvantaged segments of our population overcome the obstacles in their path to upward economic mobility.

Inequality And Human Capital In Appalachia: 1960-2000, Dan Black, Seth Sanders

University of Kentucky Center for Poverty Research Discussion Paper Series

This paper examines changes in the earnings distribution of men age 25-64 between 1960 and 2000 in Appalachia and in the remainder of the U.S. Because Appalachia is more rural than the remainder of the U.S. we also examine changes in the earnings distribution in rural vs. urban areas. Our central finding is that there have been large differences in the evolution of the earnings distribution in rural vs. urban areas and this is the principal reason that Appalachia’s earnings distribution differs to some degree from the remainder of the U.S. We find that the bottom of the earnings distribution …

Changes In The Distribution Of Income Among Single Mother Families: Murphy Brown Meets Inequality, Christopher Bollinger, James P. Ziliak

University of Kentucky Center for Poverty Research Discussion Paper Series

We document the demographic and economic forces underlying changes in income inequality among single mother families over the past three decades in the United States. Using decomposable measures of after-tax income-to-needs inequality, we examine within- and between-group inequality based on education attainment, age, past marital status, race, and employment status. We also conduct income factor decompositions to quantify the relative contributions of earnings, transfers, other income, and taxes to inequality. Our results from the March Current Population Survey show that income-to-needs inequality rose nearly 30 percent between 1979 and 2005. The demographic decompositions indicate that most of the change in …

Strategies For Improving Economic Mobility Of Workers, Maude Toussaint-Comeau

Employment Research Newsletter

No abstract provided.

Building Equitable Communities: A New Role For City Hall, Kiran Cunningham, Hannah J. Mckinney

Employment Research Newsletter

No abstract provided.

Rising Wage Inequality In Urban Labor Markets, Thomas Hyclak

Employment Research Newsletter

No abstract provided.

Rising Wage Inequality: The 1980s Experience In Urban Labor Markets, Thomas Hyclak

Upjohn Press

Hyclak analyzes information not utilized in previous studies of wage inequality. Whereas researchers previously relied on data derived from the national labor market, Hyclak draws on data from the Area Wage Surveys (AWS), which allows him to focus on changes in the wage structure in a sample of 20 local labor markets for the period of 1974 to 1991. This source also allows him to examine changes in the structure of wages paid for some 40 different jobs found in four different occupational groups. In addition, Hyclak is able to concentrate on jobs and the skills required as the primary …

Changes In Income Inequality Within U.S. Metropolitan Areas, Janice Fanning Madden

Upjohn Press

In studying MSA data that link the characteristics of metropolitan economies to significant changes in income inequality, Madden is able to study changes in poverty rates, household income inequality, and wage inequality within 182 of the largest MSAs and to identify what she says are the three factors most likely to influence changes in income inequality in metropolitan areas.

Poverty And Inequality: The Political Economy Of Redistribution, Jon Neill Editor

Upjohn Press

Despite the nation's significant and prolonged economic growth during the 1990s, the portion of aggregate income going to the poorest 20 percent of the population declined, while that of the richest 20 percent grew. The contributors to this volume examine the extent and reasons behind this distribution.

Earnings Inequality In Germany, Katharine G. Abraham, Susan N. Houseman

Upjohn Institute Working Papers

Recent studies have documented the growth of earnings inequality in the United States during the 1980s. In contrast to these studies' findings, our analysis of micro data for the former West Germany yields virtually no evidence of growth in earnings inequality over the same period. Between 1978 and 1988, a reduction in the dispersion of earnings among workers in the bottom half of the earnings distribution led to a narrowing of the overall dispersion of earnings in Germany. Earnings differentials across education and age groups remained roughly stable, and there was no general widening of earnings differentials within either education …

The Economics Of Comparable Worth, Mark R. Killingsworth

Upjohn Press

Killingsworth provides a clear statement of the definitional and conceptual issues surrounding comparable worth as well as an examination of its actual and potential effects. He also shows how comparable worth might work in alternative labor market settings and provides evidence of the effects of the comparable worth measures implemented in San Jose, Calif., the State of Minnesota, and Australia.