Income Inequality in the 1990s: Re-forging a Lost Relationship

Richard Burkhauser, Kenneth Couch, Andrew Houtenville and Ludmila Rovba

Journal of Income Distribution, 2003, vol. 12, issue 3-4, 2-2

Abstract: Using data from the March Current Population Survey, summary inequality measures as well as kernel density estimations, we find gains from economic growth over the 1990s business cycle (1989-2000) were more equitably distributed than over the1980s business cycle (1979-1989). The entire distribution of household size-adjusted income moved upwards in the 1990s with profound improvements for African Americans, single mothers and those living in households receiving welfare. Most gains occurred over the growth period 1993-2000. Improvements in average income and income inequity over the latter period are reminiscent of gains seen in the first three decades after World War II.

Date: 2003
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