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Follow us Inequality of Wage Rates, Earnings, and Family Income in the United States, 1975-2002
Gottschalk, Peter, and Sheldon H. Danziger. 2004. "Inequality of Wage Rates, Earnings, and Family Income in the United States, 1975-2002." PSC Research Report No. 04-568. October 2004.
This paper analyzes distributional changes over the last quarter of thetwentieth century. We focus on four distinct distributions: the distributionof hourly wage rates, the distribution of annual earnings of individuals, thedistribution of annual earnings of families, and the distribution of totalfamily income adjusted for family size. Both male wage rate inequalityand family income inequality accelerated during the early 1980’s,increased at a slower rate through the early 1990’s and then stabilized at ahigh level through the early 2000’s. The similarity in the timing ofchanges in these two distributions has been used as evidence thatincreased family income inequality primarily reflects increased inequalityof wage rates. We show that other important factors were also at work.
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