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Policy Options to Address Slow Income Growth and Improve Income Mobility

Policy Options to Address Slow Income Growth and Improve Income Mobility Abstract Over an extremely long period of time, real compensation growth does track real output growth. However, for many years the level of male compensation was unusually high relative to productivity, so much of what has happened since 1973 has been a course correction where productivity catches up. Income concentration has risen, but, typically, in the United States periods of increasing concentration have been periods of higher median income growth. The data suggest that the share of earnings going to the top 1 percent peaked around 2000, and that upward income mobility in the United States has not diminished, and is comparable to that in other nations. We do need policy changes to promote upward mobility, both indirectly by encouraging aggregate growth and targeting those that help poor children move ahead. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Business Economics Springer Journals

Policy Options to Address Slow Income Growth and Improve Income Mobility

Winship, Scott
Business Economics , Volume 51 (2): 8 – Apr 1, 2016
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References (23)

Publisher
Springer Journals
Copyright
2016 National Association for Business Economics
ISSN
0007-666X
eISSN
1554-432X
DOI
10.1057/be.2016.22
Publisher site
See Article on Publisher Site

Abstract

Abstract Over an extremely long period of time, real compensation growth does track real output growth. However, for many years the level of male compensation was unusually high relative to productivity, so much of what has happened since 1973 has been a course correction where productivity catches up. Income concentration has risen, but, typically, in the United States periods of increasing concentration have been periods of higher median income growth. The data suggest that the share of earnings going to the top 1 percent peaked around 2000, and that upward income mobility in the United States has not diminished, and is comparable to that in other nations. We do need policy changes to promote upward mobility, both indirectly by encouraging aggregate growth and targeting those that help poor children move ahead.

Journal

Business Economics – Springer Journals

Published: Apr 1, 2016

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