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Changes in Employment and Hours, and Family Income Inequality in the United.States, 1969--1989

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  • Lee Chulhee

Abstract

This paper estimates how much changes in employment and hours worked for family heads and spouses contributed to the rise in the family income inequality between 1969 and 1989. Change in labor market activity of family heads accounts for half of the increase in the income gap between the top and bottom 10th families. The effect of change in work effort on the income inequality is considerably weaker where four-fifths of families in the middle of income distribution are considered. This result is robust to changes in the selection of the population. The rise in the inequality of labor market activity occurred largely within families headed by prime-age men. The rise in the percentage of families headed by female and the decline in employment rate for older family heads are relatively minor factors. [J2, E2, N3]

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  • Lee Chulhee, 2001. "Changes in Employment and Hours, and Family Income Inequality in the United.States, 1969--1989," International Economic Journal, Taylor & Francis Journals, vol. 15(2), pages 27-49, June.
    • Handle: RePEc:taf:intecj:v:15:y:2001:i:2:p:27-49
    DOI: 10.1080/10168730100000034
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    1. Robert H. Haveman, 1996. "Earnings Inequality: The Influence of Changing Opportunities and Choices," Books, American Enterprise Institute, number 52869, September.
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    3. Chinhui Juhn, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 79-121.
    4. Juhn, Chinhui & Murphy, Kevin M, 1997. "Wage Inequality and Family Labor Supply," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 72-97, January.
    5. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-1381, September.
    6. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
    7. Burtless, Gary, 1993. "The Contribution of Employment and Hours Changes to Family Income Inequality," American Economic Review, American Economic Association, vol. 83(2), pages 131-135, May.
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    Cited by:

    1. Xiang Wei & Hailin Qu & Emily Ma, 2016. "How Does Leisure Time Affect Production Efficiency? Evidence from China, Japan, and the US," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 101-122, May.

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