Granular Income Inequality and Mobility using IDDA: Exploring Patterns across Race and Ethnicity

Illenin Kondo, Kevin Rinz, Natalie Gubbay, Brandon Hawkins, John L. Voorheis and Abigail Wozniak

No 32709, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We explore the evolution of income inequality and mobility in the U.S. for a large number of subnational groups defined by race and ethnicity, using granular statistics describing income distributions, income mobility, and conditional income growth derived from the universe of tax filers and W-2 recipients that we observe over a two-decade period (1998–2019). We find that income inequality and income growth patterns identified from administrative tax records differ in important ways from those that one might identify in public survey sources. The full set of statistics that we construct is available publicly alongside this paper as the Income Distributions and Dynamics in America, or IDDA, dataset. Using two applications, we illustrate IDDA’s relevance for understanding income inequality trends. First, we extend Bayer and Charles (2018) beyond earnings gaps between Black and White men and document that, unlike those for other groups, earnings for both Black men and Black women fell behind earnings for White men following the Great Recession. This trend lasted through 2019, the end of the data period. Second, we document a significant reversal in the convergence of earnings for Native earners in Native areas.

JEL-codes: D1 D31 J15 J16 J31 (search for similar items in EconPapers)
Date: 2024-07
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Forthcoming: Granular Income Inequality and Mobility Using IDDA: Exploring Patterns across Race and Ethnicity , Illenin Kondo, Kevin Rinz, Natalie Gubbay, Brandon Hawkins, John Voorheis, Abigail Wozniak. in Race, Ethnicity, and Economic Statistics for the 21st Century , Akee, Katz, and Loewenstein. 2024

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Related works:
Chapter: Granular Income Inequality and Mobility Using IDDA: Exploring Patterns across Race and Ethnicity (2024)
Working Paper: Granular Income Inequality and Mobility using IDDA: Exploring Patterns across Race and Ethnicity (2024)
Working Paper: Granular Income Inequality and Mobility using IDDA: Exploring Patterns across Race and Ethnicity (2023)
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