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Trends In Inequality Using Consumption‐Expenditures: The U.S. From 1960 To 1993

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  • David Johnson
  • Stephanie Shipp

Abstract

While much of the evidence suggests that there was an increase in inequality in the U.S. during the 1980s, the reasons are less evident. Using the U.S. Consumer Expenditure Survey data, we find that the inequality of consumption‐expenditures, as well as the inequality of other measures of resources, widened considerably during the 1980s. While previous studies suggest that increasing inequality is mainly due to increases in within group inequality, we show that by decomposing inequality by the interaction of family type and education almost three‐fourths of the increase in inequality is accounted for by changes in inequality between groups and by shifts in the population.

Suggested Citation

  • David Johnson & Stephanie Shipp, 1997. "Trends In Inequality Using Consumption‐Expenditures: The U.S. From 1960 To 1993," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(2), pages 133-152, June.
    • Handle: RePEc:bla:revinw:v:43:y:1997:i:2:p:133-152
    DOI: 10.1111/j.1475-4991.1997.tb00211.x
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    Cited by:

    1. Hornstein, Andreas & Krusell, Per & Violante, Giovanni L., 2005. "The Effects of Technical Change on Labor Market Inequalities," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 20, pages 1275-1370, Elsevier.
    2. Harley Frazis & Jay Stewart, 2011. "How does household production affect measured income inequality?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 3-22, January.
    3. John Sabelhaus & David Johnson & Stephen Ash & David Swanson & Thesia I. Garner & John Greenlees & Steve Henderson, 2014. "Is the Consumer Expenditure Survey Representative by Income?," NBER Chapters, in: Improving the Measurement of Consumer Expenditures, pages 241-262, National Bureau of Economic Research, Inc.
    4. Jeremy Lise & Shannon Seitz, 2011. "Consumption Inequality and Intra-household Allocations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(1), pages 328-355.
    5. Esa Karonen & Mikko Niemelä, 2022. "Necessity-Rich, Leisure-Poor: The Long-Term Relationship Between Income Cohorts and Consumption Through Age-Period-Cohort Analysis," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 599-620, September.
    6. Harley Frazis & Jay Stewart, 2006. "How Does Household Production Affect Earnings Inequality?: Evidence from the American Time Use Survey," Economics Working Paper Archive wp_454, Levy Economics Institute.
    7. Jonathan Heathcote & Fabrizio Perri & Giovanni Violante & Lichen Zhang, 2023. "More Unequal We Stand? Inequality Dynamics in the United States, 1967–2021," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 50, pages 235-266, October.
    8. Juan Luo & Bao-zhen Li, 2022. "Impact of Digital Financial Inclusion on Consumption Inequality in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 529-553, September.

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