How the Distribution of After-Tax Income Changed Over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan

36 Pages Posted: 21 Feb 2008

See all articles by Richard V. Burkhauser

Richard V. Burkhauser

Cornell University - Department of Policy Analysis & Management (PAM); University of Melbourne, Melbourne Institute

Takashi Oshio

Hitotsubashi University

Ludmila Rovba

Cornell University - Department of Economics

Date Written: August 2007

Abstract

Using kernel density estimation we find that over their 1990s business cycles the entire distribution of after-tax (disposable) income moved to the right in the United States and Great Britain while inequality declined. In contrast, Germany and Japan experienced less growth, a rise in inequality and a decline in the middle mass of their distributions that spread mostly to the right, much like the United States over its 1980s business cycle. Inequality fell within the older population in all four countries and within the younger population in the United States and Great Britain, but rose substantially in Germany and Japan.

Keywords: income inequality, kernel density estimation, economic well-being, cross-country comparisons

JEL Classification: D3

Suggested Citation

Burkhauser, Richard V. and Oshio, Takashi and Rovba, Ludmila, How the Distribution of After-Tax Income Changed Over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan (August 2007). Michigan Retirement Research Center Research Paper No. WP 2006-145, SOEPpaper No. 35, Available at SSRN: https://ssrn.com/abstract=1095314 or http://dx.doi.org/10.2139/ssrn.1095314

Richard V. Burkhauser (Contact Author)

Cornell University - Department of Policy Analysis & Management (PAM) ( email )

120 Martha Van Rensselaer Hall
Ithaca, NY 14853
United States

University of Melbourne, Melbourne Institute ( email )

Level 5, FBE Building, 111 Barry Street
161 Barry Street
Carlton, VIC 3053
Australia

Takashi Oshio

Hitotsubashi University ( email )

Ludmila Rovba

Cornell University - Department of Economics

414 Uris Hall
Ithaca, NY 14853-7601
United States

HOME PAGE: http://www.people.cornell.edu/pages/lr56

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