The Structure of the Earnings Distribution: How Are Households and Individuals Related?

Simon Parker ()

Bulletin of Economic Research, 1995, vol. 47, issue 2, 127-42

Abstract: This paper investigates the links between individual and household distributions of earnings. Using a sample of 1991 data from the UK, considerable complexity is uncovered in the structure of the household earnings distribution. This is due to heterogeneity of earners and positive "clustering" of earners within households. The structure of the clustering behaviour of earners for different household types is estimated, and the contribution of clustering to overall earnings inequality is evaluated. Perhaps surprisingly in view of the observed clustering behaviour, it is found that clustering has reduced overall inequality, although the mean-adjusted distribution of individual earnings is insignificantly different from the distribution of household earnings. Copyright 1995 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1995
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