Age-adjusted measures of earnings inequality in the United States, 1980-2010

Tammy Schirle

Economics Bulletin, 2012, vol. 32, issue 3, 2662-2669

Abstract: I demonstrate a simple procedure for creating age-adjusted earnings distribution statistics, using US data and recentered influence function regression methods. As the baby boom generation has moved toward the latter part of their career, earnings distribution statistics for the working age population have emphasized within-cohort disparities that are largest at older ages. As such, the aging of the US population has placed upward pressure on standard measures of earnings inequality. Results suggest the increase in the 90-10 log differential has been overstated by 8 percent when the changing age structure of the population is accounted for.

Keywords: Earnings; Wages; Inequality; United States; Population aging (search for similar items in EconPapers)
JEL-codes: J1 J3 (search for similar items in EconPapers)
Date: 2012-09-25
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