Consumption and Income Inequality and the Great Recession

Bruce D. Meyer; James X. Sullivan

doi:10.1257/aer.103.3.178

American Economic Review Vol. 103 No. 3 2013

Consumption and Income Inequality and the Great Recession

Bruce D. Meyer¹; James X. Sullivan²

¹ Harris School of Public Policy Studies, University of Chicago, 1155 E. 60th Street, Chicago, IL 60637. · ² University of Notre Dame, Department of Economics, 447 Flanner Hall, Notre Dame, IN 46556.

Abstract

We examine changes in consumption and income inequality between 2000 and 2011. During the most recent recession, unemployment rose and asset values declined sharply. We investigate how the recession affected inequality while addressing concerns about underreporting in consumption data. Income inequality rose throughout the period from 2000 to 2011. The 90/10 ratio was 19 percent higher at the end of this period than at the beginning. In contrast, consumption inequality rose during the first half of this period but then fell after 2005. By 2011, the 90/10 ratio for consumption was slightly lower than it was in 2000.

DOI: 10.1257/aer.103.3.178
Volume: 103
Issue: 3
Pages: 178-183
Language: en
Sources: bibtex:phds-export.bib openalex crossref

Consumption and Income Inequality and the Great Recession

Abstract

Cite