A Consistent Data Series to Evaluate Growth and Inequality in the National Accounts

Publication Abstract

Fixler, Dennis, David S. Johnson, Andrew Craig, and Kevin Furlong-Norman. 2017. "A Consistent Data Series to Evaluate Growth and Inequality in the National Accounts." Review of Income and Wealth, 63(s2): S437-S459.

Recent headlines frequently refer to rising inequality and its implication on economic growth and social welfare. Addressing the latter is difficult and requires more than simply looking at GDP, as Kuznets long ago pointed out. In this paper we focus on the importance of the income measure underlying the inequality measure when examining the relationship between GDP growth and inequality. We create a mapping using Census Bureau household survey data and Bureau of Labor Statistics (BLS) consumer expenditure data to create distributional measures of the Bureau of Economic Analysis (BEA) personal income. We show that for the period 2000-2012, inequality using personal income is substantively lower than inequality measured using Census Bureau money income, and the trends in both inequality and median income are different. This demonstrates the importance of using a measure a national accounts based measure of income when examining the relationships between inequality and growth.

10.1111/roiw.12324

Browse | Search | Next

PSC In The News

RSS Feed icon

Erin Cech explains her research on the "passion principle," and how America's obsession with pursuing and pushing towards a "#dreamjob" is flawed

Shaefer notes success of initial CARES Act stimulus and concerns over a new round of COVID-19 shutdown support under a Biden presidency

More News

Highlights

Faul's three-nation research to examine relationships between social factors and epigenetics

Open for Registration: Principles of Text Analysis Workshop

More Highlights


Connect with PSC follow PSC on Twitter Like PSC on Facebook