Home Invites Members Groups Events Videos News Photos Blogs Polls Singles Forums Chat
Home > Career Content > Post Content

The Myth of Stagnant Income (8142 hits)


This paper by Bruce Sacerdote is worth noting:

Despite the large increase in U.S. income inequality, consumption for families at the 25th and 50th percentiles of income has grown steadily over the time period 1960-2015. The number of cars per household with below median income has doubled since 1980 and the number of bedrooms per household has grown 10 percent despite decreases in household size. The finding of zero growth in American real wages since the 1970s is driven in part by the choice of the CPI-U as the price deflator; small biases in any price deflator compound over long periods of time.

Using a different deflator such as the Personal Consumption Expenditures index (PCE) yields modest growth in real wages and in median household incomes throughout the time period. Accounting for the Hamilton (1998) and Costa (2001) estimates of CPI bias yields estimated wage growth of 1 percent per year during 1975-2015. Meaningful growth in consumption for below median income families has occurred even in a prolonged period of increasing income inequality, increasing consumption inequality and a decreasing share of national income accruing to labor.

http://gregmankiw.blogspot.com/
Posted By: Cheer Leader
Friday, April 28th 2017 at 9:31AM
You can also click here to view all posts by this author...

Report obscenity | post comment
Share |
Please Login To Post Comments...
Email:
Password:

 
More From This Author
HBCUConnect.com says there is still time to connect at the Natl Sales Network Conference in Houston!
History in the making - take a peek at Queen Oprah's Workshop!
NFL Lockout Comes to an End: A New Deal is Approved
You too are invited to be a performer at Howard University's Homecoming International Yardfest Celebration!!!
Sunday, Funday, Loveday
Owners, players reach agreement on economics of labor deal
Check here for your list of Historically Black Colleges that offer a concentration in Sales...
A few words from Mr. Shut Up & Train: Rahman "Ray" Grayson - FAMU Alum
Forward This Career Article Entry!
Career Content Home

(Advertise Here)
Who's Online
>> more | invite 
Latest Member Activity
shannan cole just became a new member. 10:36AM
reginald culpepper just posted a article entitled 'atlanta fans! see tyler perry's mea culpa for free with these advance screening passes, feb 12, 2024'. 07:26PM
angie turner just edited her profile. 10:25AM
angie turner just became a new member. 10:07AM
lillian livingston just became a new member. 07:46PM
betty cooper just became a new member. 03:31AM
joyce badie just edited her profile. 09:20PM
joyce badie just became a new member. 09:13PM
taryln parks just became a new member. 01:49PM
beatrice delinois just edited her profile. 02:06PM
beatrice delinois just became a new member. 01:26PM
donyel berry just edited her profile. 08:04PM
>> more | invite friends 
Most Popular Bloggers
enid gonzalez has logged 439 blog subscribers!
>> more | add