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Title: Disaggregating the Effect of the Business Cycle on the Distribution of Income
Authors: Blank, Rebecca
Keywords: income distribution
business cycle
economic growth
women in the labor market
Issue Date: 1-May-1985
Citation: Economica, Vol. 56, No.222, May 1989
Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 189
Abstract: This paper disaggregates total household income into a complete set of components and studies the comparative cyclicality of these com- ponent< to economic growth. Comparisons of the relative responsiveness to GNP growth of wages, hours of work, and total labor market income of heads and wives, and transfer income sources of households are made across income, race, sex and age groups. This provides a picture of the channels by which economic growth produces income change. Significant differences in elasticities are found to exist both between different income components and between different population groups for the same component. The narrowing income distribution in times of high growth occurs primarily because of large elasticities on head's labor market income among the poor. Both wages and hours show evidence of cycli- cality. The labor market earnings of women -- both wives and household heads —- is far less responsive to growth. Cyclicality in transfer income varies enormously between population groups and by type of transfer.
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Appears in Collections:IRS Working Papers

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