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Unemployment and the Size Distribution of Income

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  • Nolan, Brian

Abstract

The impact of changes in the level of unemployment on the U.K. size distribution of annual income is examined using cross-section data. Increased unemployment is shown to have a discernible regressive effect. However, reductions in shares were not highly concentrated at the very bottom of the distribution. Many individuals affected by unemployment during the year are in households/families, not at the bottom of the distribution, particularly because of the presence of other working members. Copyright 1986 by The Review of Economic Studies Limited.

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  • Nolan, Brian, 1986. "Unemployment and the Size Distribution of Income," Economica, London School of Economics and Political Science, vol. 53(212), pages 421-445, November.
    • Handle: RePEc:bla:econom:v:53:y:1986:i:212:p:421-45
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    Cited by:

    1. Cysne, Rubens Penha, 2004. "Towards a measure of income inequality freed from the volatility caused by variations in the rate of unemployment," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 560, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    2. Dickens & David T. Ellwood, 2004. "Whither Poverty in Great Britain and the United States? The Determinants of Changing Poverty and Whether Work Will Work," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980–2000, pages 313-370, National Bureau of Economic Research, Inc.
    3. Cysne, Rubens Penha & Turchick, David, 2012. "Equilibrium unemployment-inequality correlation," Journal of Macroeconomics, Elsevier, vol. 34(2), pages 454-469.
    4. Salvatore Morelli, 2018. "Banking crises in the US: the response of top income shares in a historical perspective," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 257-294, June.
    5. Rubens Penha Cysne, 2009. "On the Positive Correlation between Income Inequality and Unemployment," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 218-226, February.
    6. Barbara Dluhosch & Daniel Horgos & Klaus Zimmermann, 2014. "Social Choice and Social Unemployment-Income Cleavages: New Insights from Happiness Research," Journal of Happiness Studies, Springer, vol. 15(6), pages 1513-1537, December.
    7. Thomas Volscho, Jr., 2004. "Income Distribution in 14 OECD Nations, 1967-2000: Evidence from the Luxembourg Income Study," LIS Working papers 386, LIS Cross-National Data Center in Luxembourg.

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