Online Program Home
My Program

Abstract Details

Activity Number: 169 - Macroeconomic Dynamics
Type: Contributed
Date/Time: Monday, July 30, 2018 : 10:30 AM to 12:20 PM
Sponsor: Business and Economic Statistics Section
Abstract #329538 Presentation
Title: Income Inequality Grew Faster from 1970-2016 Than Reflected by the Standard Measures
Author(s): Joseph Gastwirth*
Companies: George Washington University
Keywords: Gini index; median based indices; income inequality; Theil index

The increase in income inequality, due to a shift in favor of the upper end in the United States and other countries, has become a public policy concern. This paper shows that the Gini index, G, underestimates the rate of increase in inequality because a shift of income towards the top incomes increases both the numerator and denominator of G. A modified index (G2), which replaces the mean in the denominator by the median, indicates that income inequality in the United States grew at about twice the rate as the Gini index from 1967 to 2016. The modified Theil index of inequality also grew at a faster rate during the period.

Authors who are presenting talks have a * after their name.

Back to the full JSM 2018 program