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Income Inequality, Mobility, and Turnover at the Top in the US, 1987-2010

Author

Listed:
  • Gerald Auten
  • Geoffrey Gee
  • Nicholas Turner

Abstract

While cross-sectional data show increasing income inequality in the United States, it is also important to examine how incomes change over time. Using income tax data, this paper provides new evidence on long-term and intergenerational mobility, and persistence at the top of the income distribution. Half of those aged 35-40 in the top or bottom quintile in 1987 remain there in 2007; the others have moved up or down. While 30 percent of dependents aged 15-18 from bottom quintile households are themselves in the bottom quintile after 20 years, most have moved up. Persistence is lower in the highest income groups.

Suggested Citation

  • Gerald Auten & Geoffrey Gee & Nicholas Turner, 2013. "Income Inequality, Mobility, and Turnover at the Top in the US, 1987-2010," American Economic Review, American Economic Association, vol. 103(3), pages 168-172, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:168-72
    Note: DOI: 10.1257/aer.103.3.168
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    References listed on IDEAS

    as
    1. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
    2. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
    3. Auten, Gerald & Gee, Geoffrey, 2009. "Income Mobility in the United States: New Evidence From Income Tax Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(2), pages 301-328, June.
    4. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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