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The Shrinking Middle-Income Class: A Multivariate Analysis

Author

Listed:
  • Joe C. Davis

    (Trinity University)

  • John H. Huston

    (Trinity University)

Abstract

Deindustrialization, a decline in union membership, maturation of baby-boomers, shorter working hours and increasing numbers of families headed by women and blacks have all been cited as causes of the "shrinking of the middle class." Simultaneously testing these hypotheses, we find that the decline in union membership and fewer annual hours of work are the most important factors explaining the shift towards the lower-income class. The increase in the service sector had little impact. The major cause of movement into the upper class is the increasing number of two-income families.

Suggested Citation

  • Joe C. Davis & John H. Huston, 1992. "The Shrinking Middle-Income Class: A Multivariate Analysis," Eastern Economic Journal, Eastern Economic Association, vol. 18(3), pages 277-285, Summer.
    • Handle: RePEc:eej:eeconj:v:18:y:1992:i:3:p:277-285
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume18/V18N3P277_285.pdf
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    References listed on IDEAS

    as
    1. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    2. Charles M. Beach, 1989. "Review: Dollars and Dreams: A Reduced Middle Class? Alternative Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 162-193.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Income; Middle Income;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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