The authors conducted a systematic empirical study of cross-sectional inequality in the U.S., integrating data from various surveys. The authors follow the mapping suggested by the household budget constraint from individual wages to individual earnings, to household earnings, to disposable income, and, ultimately, to consumption and wealth. They document a continuous and sizable increase in wage inequality over the sample period. Changes in the distribution of hours worked sharpen the rise in earnings inequality before 1982, but mitigate its increase thereafter. Taxes and transfers compress the level of income inequality, especially at the bottom of the distribution, but have little effect on the overall trend. Charts and tables. This is a print-on-demand publication; it is not an original.

We conduct a systematic empirical study of cross-sectional inequality in the United States, integrating data from the Current Population Survey, the Panel Study of Income Dynamics, the Consumer Expenditure Survey, and the Survey of Consumer Finances. In order to understand how different dimensions of inequality are related via choices, markets, and institutions, we follow the mapping suggested by the household budget constraint from individual wages to individual earnings, to household earnings, to disposable income, and, ultimately, to consumption and wealth. We document a continuous and sizable increase in wage inequality over the sample period. Changes in the distribution of hours worked sharpen the rise in earnings inequality before 1982, but mitigate its increase thereafter. Taxes and transfers compress the level of income inequality, especially at the bottom of the distribution, but have little effect on the overall trend. Finally, access to financial markets has limited both the level and growth of consumption inequality.

Heathcote et al. (2010) conducted an empirical analysis of several dimensions of inequality in the United States over the years 1967-2006, using publicly-available survey data. This paper expands the analysis, and extends it to 2021. We find that since the early 2000s, the college wage premium has stopped growing, and the race wage gap has stalled. However, the gender wage gap has kept shrinking. Both individual- and household-level income inequality have continued to rise at the top, while the cyclical component of inequality dominates dynamics below the median. Inequality in consumption expenditures has remained remarkably stable over time. Income pooling within the family and redistribution by the government have enormous impacts on the dynamics of household-level inequality, with the role of the family diminishing and that of the government growing over time. In particular, largely due to generous government transfers, the COVID recession has been the first downturn in fifty years in which inequality in disposable income and consumption actually declined.

In the United States, some populations suffer from far greater disparities in health than others. Those disparities are caused not only by fundamental differences in health status across segments of the population, but also because of inequities in factors that impact health status, so-called determinants of health. Only part of an individual's health status depends on his or her behavior and choice; community-wide problems like poverty, unemployment, poor education, inadequate housing, poor public transportation, interpersonal violence, and decaying neighborhoods also contribute to health inequities, as well as the historic and ongoing interplay of structures, policies, and norms that shape lives. When these factors are not optimal in a community, it does not mean they are intractable: such inequities can be mitigated by social policies that can shape health in powerful ways. Communities in Action: Pathways to Health Equity seeks to delineate the causes of and the solutions to health inequities in the United States. This report focuses on what communities can do to promote health equity, what actions are needed by the many and varied stakeholders that are part of communities or support them, as well as the root causes and structural barriers that need to be overcome.

We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we document the different channels via which monetary policy shocks affect inequality, as well as how these channels depend on the nature of the change in monetary policy.

The aftermath of Hurricane Katrina exposed to the world what many U.S. politicians and pundits have long been able to ignore. The media images that commanded our attention spoke loudly of the class and racial divisions that still exist in the United States today. Despite the stock market gains of the 1990s, which increased the ranks of millionaires and created greater wealth for those already wealthy, U.S. society has witnessed a dramatic increase in class inequality over that last two decades. A host of newly available research indicates that the United States is afar more classbound society than was previously supposed. The rich are becoming both relatively and absolutely richer while the poor are becoming relatively, if not absolutely, poorer. More Unequal: Aspects of Class in the United States is a sobering examination of the dynamics of class relations today. John Bellamy Foster, William K. Tabb, David Roediger, Stephanie Luce, and Mark Brenner— among others—contribute essays that challenge many of our assumptions about class and provide a multilayered analysis. Topics include the impact of social and economic policy on class; wealth and prospects for the working poor; undocumented workers and their exploitation in the U.S. informal economy; race and class struggles post-Hurricane Katrina; women and class over the last forty years; and education reform and the devastating effects for public schooling. Editor, Michael D. Yates shares a personal story of his working-class life and values, the shaping of his political consciousness, and the people and ideas that inspired his teaching. For the vast majority of us, a strong work ethic and desire to see the next generation in better circumstances are no longer enough. The barriers separating classes are hardening. Class inequality manifests itself in wealth, income, and occupation, but also in education, consumption, and health. More Unequal: Aspects of Class in the United States demonstrates that an analysis of society as a whole—its relationships of power, conflict, and potential for social change— is not possible without a thorough investigation of the role and meaning of class.

At the heart of developed societies lies an insatiable drive for wealth and prosperity. Yet in a world ruled by free-market economics, there are always winners and losers. The benefits enjoyed by the privileged few come at the expense of the many. In this important new book, Stephan Lessenich shows how our wealth and affluence are built overwhelmingly at the expense of those in less-developed countries and regions of the world. His theory of ‘externalization’ demonstrates how the negative consequences of our lifestyles are directly transferred onto the world’s poorest. From the destruction of habitats caused by the massive increase in demand for soy and palm oil to the catastrophic impact of mining, Lessenich shows how the Global South has borne the brunt of our success. Yet, as we see from the mass movements of people across the world, we can no longer ignore the environmental and social toll of our prosperity. Lessenich’s highly original account of the structure and dynamics of global inequality highlights the devastating consequences of the affluent lifestyles of the West and reminds us of our far-reaching political responsibilities in an increasingly interconnected world.

Auerbach here focuses on the elite nature of the profession, examining its emphasis on serving business interests and its attempts to exclude participation by minorities.

The paper studies how high leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of the rich, a large increase in leverage for the remainder, and an eventual financial and real crisis. The paper presents a theoretical model where these features arise endogenously as a result of a shift in bargaining powers over incomes. A financial crisis can reduce leverage if it is very large and not accompanied by a real contraction. But restoration of the lower income group's bargaining power is more effective.