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Distribution of Household Income in America: Effects of Source of Income, Inflation, and Cost of Living Differentials

  • Mohamed Abdel-Ghany
  • Stephen J. Thoma
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  • 122 Downloads
Part of the Social Indicators Research Series book series (SINS, volume 17)

Abstract

This study focuses on four aspects of the inequality of average household income among the American states. First, we document change in the inequality of nominal average household income between 1979 and 1990. Second, we identify states contributing to the observed inequality. Third, we examine the pattern in state income convergence-divergence when spatial and temporal state price differentials are accounted for. Fourth we provide estimates of impacts of alternative income components on income inequality. We find that inequality in real income is smaller than that in nominal income. Also, we conclude that traditional income measures that exclude transfer payments and other types of income overstate inequality.

Keywords

Household Income Income Inequality Labor Income Real Income Transfer Payment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 2002

Authors and Affiliations

  • Mohamed Abdel-Ghany
    • 1
  • Stephen J. Thoma
    • 1
  1. 1.The University of AlabamaUSA

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