The U.S. Congressional Budget Office (CBO) has issued a series of charts showing trends in household income and income inequality since 1979, together with summarized conclusions, and covering income both before and after taxes and program benefits. CBO defined “labor income” as primarily earnings plus employer contributions for health insurance and payroll taxes.
CBO found that market income inequality rose almost continually over the three decades. In the earlier years, this inequality was a product of inequality within various income sources, especially labor income. But in later years, a shift of income away from labor income contributed more to growing inequality.
Labor income constitutes roughly three-quarters of all market income (i.e., income other than Federal programs). This share remained relatively constant through the mid-1990s, but since the late 1990s the labor income share has fluctuated much more than previously (although by 2009 it was again at about a 75 percent level).
Click here for Trends in The Distribution of Household Income, 1979–2009 (Washington: U.S. Congressional Budget Office, August 6, 2012).
Modified On : August 17, 2012
Type : Thread
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In Relation : Compensation and Income