Rising Income Inequality and Living Standards in OECD Countries: How Does the Middle Fare?

Stefan Thewissen, Lane Kenworthy, Brian Nolan, Max Roser and Tim Smeeding
Additional contact information
Lane Kenworthy: Department of Sociology, University of California-San Diego
Max Roser: Nuffield College and Oxford Martin School, University of Oxford
Tim Smeeding: LaFollette School of Public Affairs, University of Wisconsin-Madison

Journal of Income Distribution, 2018, vol. 26, issue 2, 1-23

Abstract: Income inequality has increased in a number of the rich democratic nations over the past generation. We examine whether this has reduced income growth for middleincome households. Using LIS, OECD and WID data, we show how median household incomes and income inequality have evolved between 1980 and 2013, and we analyse whether these trends are related. Growth in median incomes is negatively associated with changes in the Gini but not with changes in top income shares. Economic growth is strongly associated with growth in median incomes, although it does not seem to fully transmit.

Keywords: Living standards; inequality; median; inclusive growth (search for similar items in EconPapers)
JEL-codes: D31 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (10)

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Related works:
Working Paper: Rising Income Inequality and Living Standards in OECD Countries: How Does the Middle Fare? (2015)
Working Paper: Rising Income Inequality and Living Standards in OECD Countries: How Does the Middle Fare? (2015)
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