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Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp01jm214p131
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dc.contributor.authorHines, Jamesen_US
dc.contributor.authorHoynes, Hilaryen_US
dc.contributor.authorKrueger, Alan B.en_US
dc.date.accessioned2011-10-26T01:29:59Z-
dc.date.available2011-10-26T01:29:59Z-
dc.date.issued2001-07-01T00:00:00Zen_US
dc.identifier.urihttp://arks.princeton.edu/ark:/88435/dsp01jm214p131-
dc.description.abstractPeriods of rapid U.S. economic growth during the 1960s and 1970s coincided with improved living standards for many segments of the population, including the disadvantaged as well as the affluent, suggesting to some that a rising economic tide lifts all demographic boats. This paper investigates the impact of U.S. business cycle conditions on population well-being since the 1970s. Aggregate employment and hours worked in this period are strongly procyclical, particularly for low-skilled workers, while aggregate real wages are only mildly procyclical. Similar pattems appear in a balanced panel of PSID respondents that removes the effects of changing workforce composition, though the magnitude of the responsiveness of real wages to unemployment appears to have declined in the last 20 years. Economic upturns increase the likelihood that workers acquire jobs in sectors with positively sloped career ladders. Spending by state and local govemments in all categories rises during economic expansions, including welfare spending, for which needs vary countercyclically. Since the disadvantaged are likely to benefit disproportionately from such govemment spending, it follows that the public finances also contribute to conveying the benefits of a strong economy to diverse population groups.en_US
dc.relation.ispartofseriesWorking Papers (Princeton University. Industrial Relations Section) ; 454en_US
dc.subjectwagesen_US
dc.subjectrising tideen_US
dc.titleAnother Look at Whether a Rising Tide Lifts All Boatsen_US
dc.typeWorking Paperen_US
pu.projectgrantnumber360-2050en_US
Appears in Collections:IRS Working Papers

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