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Measurement and Testing of Inequality from Time Series of Deciles with an Application to U.S. Wages

Andrew Harvey1; Jared Bernstein2

1 University of Cambridge · 2 Economic Policy Institute

The Review of Economics and Statistics 2003

This article uses unobserved-components time series models to capture the underlying trends in the quarterly deciles of U.S. hourly wages. Tests of stability and divergence are developed as a means of assessing changes in inequality. The decrease in the wage gender gap is examined, and the impact of changes in the minimum wage is assessed.

DOI
10.1162/003465303762687767
Volume
85 (1)
Pages
141-152
Language
en
Export
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