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Friday, June 08, 2012

Inequality Has Increased in Income and Consumption

I've highlighted this research in the past, as well as other research drawing the same conclusions, but I doubt that the message has been fully absorbed, i.e. many people still believe that consumption inequality has not increased as much as income inequality:

Inequality Has Increased in Income and Consumption, Economists Argue, by Jie Jenny Zou, WSJ: Inequality in U.S. incomes has been matched by disparities in consumption, according to recent economic research.
While economists agree that income inequality in the U.S. has steadily increased, there has been debate over whether that has also translated to an increase in consumption inequality. Some economists have long suggested that consumption, rather than income, is most indicative of how people fare in an economy. ...
Researchers at University of Chicago, University College London and Stanford University in a paper titled “The Evolution of Income, Consumption, and Leisure Inequality in the U.S. 1980-2010” suggest that not only has consumption inequality increased, but that it has also increased alongside income inequality and that inaccurate consumption data has been at the core of the issue. ...

    Posted by on Friday, June 8, 2012 at 02:13 PM in Economics, Income Distribution | Permalink  Comments (21)


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