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Inequality of Income and Consumption in the U.S.: Measuring the Trends in Inequality from 1984 to 2011 for the Same Individuals

Jonathan Fisher, David S. Johnson and Timothy M. Smeeding

Review of Income and Wealth, 2015, vol. 61, issue 4, 630-650

Abstract: type="main">

This paper examines the distribution of income and consumption in the U.S. using one dataset that obtains measures of both income and consumption from the same set of individuals. We develop a set of inequality measures that show the increase in inequality during the past 27 years using the 1984–2011 Consumer Expenditure Survey. We find that the trends in income and consumption inequality are similar between 1984 and 2006, and diverge during and after the Great Recession. For the entire 27-year period we find that consumption inequality increases almost as much as does income inequality.

Date: 2015
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Handle: RePEc:bla:revinw:v:61:y:2015:i:4:p:630-650