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Age-adjusted measures of earnings inequality in the United States, 1980-2010

Author

Listed:
  • Tammy Schirle

    (Wilfrid Laurier University)

Abstract

I demonstrate a simple procedure for creating age-adjusted earnings distribution statistics, using US data and recentered influence function regression methods. As the baby boom generation has moved toward the latter part of their career, earnings distribution statistics for the working age population have emphasized within-cohort disparities that are largest at older ages. As such, the aging of the US population has placed upward pressure on standard measures of earnings inequality. Results suggest the increase in the 90-10 log differential has been overstated by 8 percent when the changing age structure of the population is accounted for.

Suggested Citation

  • Tammy Schirle, 2012. "Age-adjusted measures of earnings inequality in the United States, 1980-2010," Economics Bulletin, AccessEcon, vol. 32(3), pages 2662-2669.
    • Handle: RePEc:ebl:ecbull:eb-12-00495
    as

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    References listed on IDEAS

    as
    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    2. David Card & Thomas Lemieux, 2001. "Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(2), pages 705-746.
    3. Ingvild Almås & Tarjei Havnes & Magne Mogstad, 2011. "Baby booming inequality? Demographic change and earnings inequality in Norway, 1967–2000," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 629-650, December.
    4. Mary C. Daly & Robert G. Valletta, 2006. "Inequality and Poverty in United States: The Effects of Rising Dispersion of Men's Earnings and Changing Family Behaviour," Economica, London School of Economics and Political Science, vol. 73(289), pages 75-98, February.
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    More about this item

    Keywords

    Earnings; Wages; Inequality; United States; Population aging;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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