Granular Income Inequality and Mobility using IDDA: Exploring Patterns across Race and Ethnicity

Natalie Gubbay, Brandon Hawkins (), Illenin Kondo, Kevin Rinz, John Voorheis and Abigail Wozniak

No 95, Opportunity and Inclusive Growth Institute Working Papers from Federal Reserve Bank of Minneapolis

Abstract: We explore the evolution of income inequality and mobility in the U.S. for a large number of subnational groups defined by race and ethnicity, using granular statistics describing income distributions, income mobility, and conditional income growth derived from the universe of tax filers and W-2 recipients that we observe over a two-decade period (1998–2019). We find that income inequality and income growth patterns identified from administrative tax records differ in important ways from those that one might identify in public survey sources. The full set of statistics that we construct is available publicly alongside this paper as the Income Distributions and Dynamics in America, or IDDA, dataset. Using two applications, we illustrate IDDA’s relevance for understanding income inequality trends. First, we extend Bayer and Charles (2018) beyond earnings gaps between Black and White men and document that, unlike those for other groups, earnings for both Black men and Black women fell behind earnings for White men following the Great Recession. This trend lasted through 2019, the end of the data period. Second, we document a significant reversal in the convergence of earnings for Native earners in Native areas.

Keywords: Income inequality; Gender wage gap; Race and ethnicity; Granular income statistics (search for similar items in EconPapers)
JEL-codes: D10 D31 E01 E20 J15 J16 J31 (search for similar items in EconPapers)
Date: 2024-07-19
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

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Related works:
Chapter: Granular Income Inequality and Mobility Using IDDA: Exploring Patterns across Race and Ethnicity (2024)
Working Paper: Granular Income Inequality and Mobility using IDDA: Exploring Patterns across Race and Ethnicity (2024)
Working Paper: Granular Income Inequality and Mobility using IDDA: Exploring Patterns across Race and Ethnicity (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmoi:98595

DOI: 10.21034/iwp.95

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