“…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
“…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
“…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
“…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
“…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
“Unintended Consequences should be read by anyone who takes for granted the superiority of progressive taxation and has not thought carefully about the trade-offs involved.” - The New Republic
“Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
“…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
“…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
“…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
“…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
“…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council

Showing 159 database articles primarily about Inequality

Currently filtering by:

Remove Inequality

Remove "primary topics only" restriction

Remove 'Database'

Show all 7,289 articles

For whatever topics you select (currently: Inequality):

Include articles that mention this topic 381

Only articles primarily about this topic 159

Are Real Wages Rising?

Joseph Politano Apricitas Economics

Date Posted:: November 13, 2023
Is Database:: Database

Real hourly compensation is above 2019 levels but below the 2015-19 trend line. @JosephPolitano

Cumulative growth in hourly compensation has exceeded inflation since the end of 2019, though it remains slightly below the trend of strong growth seen in the latter half of the 2010s. The real wage distribution has compressed—that is, lower-wage workers have seen proportionally larger gains than higher-wage workers, although this effect is lessened by the fact that low-income households have faced greater inflation than high-income households.

Takeaways by Macro Roundup^® AI

Cumulative growth in hourly compensation has outpaced inflation since the end of 2019, though it remains slightly below the trend of strong growth recorded in the latter half of the 2010s.
The real wage distribution has compressed, with lower-wage workers posting proportionally larger gains than higher-wage workers.
The compression in real wages is lessened by low-income households facing greater inflation than high-income households.

Heritability and Social Interaction in Labor Market Outcomes: Evidence from the Population of Twins in the United States

David Card, Jesse Rothstein and Moises Yi National Bureau of Economic Research

Date Posted:: September 16, 2026
Is Database:: Database
Is Important:: Important

Analysis of 44,500 twin pairs suggests ~one-third of the variation in log earnings is due to genetic differences – likely an upper bound, because same-sex twins may influence one another and share more similar environments than ordinary same-sex siblings.

Our model identifies heritability from the difference-in-differences of same-sex vs. opposite-sex twins vs. siblings. [Specifically], the model attributes to genetic differences the excess similarity of same-sex over opposite-sex twins over and above the corresponding difference among ordinary siblings, adjusting for the estimated share of same-sex twins who are identical. The ordinary-sibling comparison is intended to remove family influences that differ between sons and daughters. Social interactions may lead to an over-estimate of the genetic component in earnings. The estimated heritability of outcomes may be biased in the presence of assortative mating, genetic dominance, population stratification, or violations of the assumption that the home environment is shared to the same degree for MZ as for DZ twins. Even when estimated without bias, heritability need not indicate direct genetic effects – it also may reflect indirect or cultural effects (e.g., effects of the parents’ genes on a child’s outcomes, not operating through the child’s own genes. Twins may [also] influence each other directly – for example in their choice of jobs -- inflating the correlation in their outcomes.

Takeaways by Macro Roundup^® AI

The authors identify heritability of U.S. labor market outcomes from a difference-in-differences comparing same-sex versus opposite-sex twins against the corresponding difference among ordinary siblings, adjusting for the estimated share of same-sex twins who are identical.
Social interactions between twins, such as influencing each other’s job choices, may inflate the correlation in their outcomes and lead to an over-estimate of the genetic component in earnings.
Estimated heritability may be biased by assortative mating, genetic dominance, population stratification, or unequal sharing of the home environment between identical and fraternal twins, and even unbiased estimates may reflect indirect or cultural effects such as parents’ genes.

Recent Trends in Personal Income & Wage Inequality

Jonathan Siegel and Jason Bram Office of the New York City Comptroller

Date Posted:: September 8, 2026
Is Database:: Database

Btw 2019 and 2024, pre-tax, pre-transfer real median income in New York City fell 3.2%. The top .1% tax units, ~ households, (mean income ~$24mm) saw real growth of ~25%, whereas the bottom 90% (mean income ~$45,000) fell 0.8%.

Between 2019 and 2024, the New York City’s income shares at the top of the distribution rose faster than the nation's, and nearly two-thirds of the real income growth over the period accrued to the top 1%, compared with under 40% nationally. The result also holds when volatile capital gains are excluded. Real median income fell over the period, and real average income for the bottom 90% of tax units was essentially flat. Adjusted for local prices (but not for transfer programs), the purchasing power of income for the lower 90% of New Yorkers is close to one-fifth below that of the bottom 90% nationally. The divergence at the top is predominantly a story of non-wage income. Wage and salary income shows a much milder widening, and occupational wage data that exclude bonuses show base pay growing faster in lower-wage occupations than in higher-wage ones, and within many occupational groups wages are converging rather than growing more unequal.

Takeaways by Macro Roundup^® AI

Nearly two-thirds of New York City's real income growth between 2019 and 2024 accrued to the top 1%, compared with under 40% nationally, a result that holds when volatile capital gains are excluded.
Real median income in New York City fell between 2019 and 2024 and real average income for the bottom 90% of tax units was essentially flat, with local-price-adjusted purchasing power for the lower 90% of New Yorkers close to one-fifth below that of the bottom 90% nationally.
The divergence at the top of New York City's distribution is predominantly a story of non-wage income, with wage and salary income widening much more mildly and occupational wage data excluding bonuses showing base pay growing faster in lower-wage occupations than higher-wage ones.

US Corporate Profits Surge To Record As Worker Payouts Wilt

Myles McCormick Financial Times

Date Posted:: August 28, 2026
Is Database:: Database

Corporate profits have risen to 18% of national income, their highest share since 1947, while labor’s share has fallen to 60%, a low not seen since the 1950s. The decline in labor’s share has accelerated over the past year.

Pre-tax earnings hit an annualised $4.8tn in the second quarter, or 18% of national income, according to Bureau of Economic Analysis data, the highest share since the aftermath of the second world war. Employees’ share from wages and benefits fell to 60%, the lowest level since the 1950s. “Regardless of what measure you look at, workers, in terms of employee compensation, have been receiving an increasingly small share of national income over time,” said Abiel Reinhart, an economist at JPMorgan. The decline in labour’s share of income has gained pace in the past five years and especially over the past 12 months.

Takeaways by Macro Roundup^® AI

US pre-tax corporate profits reached an annualised $4.8tn in the second quarter, or 18% of national income, the highest share since the aftermath of the second world war, according to Bureau of Economic Analysis data.
Employees' share of national income from wages and benefits fell to 60%, the lowest level since the 1950s, with the decline gaining pace over the past five years and especially the past 12 months.
Abiel Reinhart, an economist at JPMorgan, said that regardless of the measure used, workers have been receiving an increasingly small share of national income over time.

The Rise Of The Deserving Rich

Economist Staff The Economist

Date Posted:: July 24, 2026
Is Database:: Database
Is Important:: Important

An Economist analysis of the wealth of 7,000 billionaires finds that over the past decade, the share of billionaire wealth “derived from self-made entrepreneurs in competitive sectors has surged to an all-time high.”

Drawing on data from Forbes, a magazine, Hurun, a research firm, and Gapminder, a Swedish foundation, we have assembled a list of about 7,000 billionaires from the past 25 years. We call a billionaire’s wealth “uncompetitive” when it mainly comes from industries such as gambling, construction, defence, and raw materials. These sectors often depend on political access. We count inheritors in the “uncompetitive” category. From 2001, when our data begin, to 2014, the uncompetitive share of billionaire wealth rose slightly. Yet over the past decade, the share derived from self-made entrepreneurs in competitive sectors has surged to an all-time high. For the first time, half the wealth of the world’s billionaires is reasonably fairly earned. And since 2021, the total wealth derived from uncompetitive sectors has declined.

Takeaways by Macro Roundup^® AI

For the first time, half the wealth of the world's billionaires is reasonably fairly earned, with the share derived from self-made entrepreneurs in competitive sectors reaching an all-time high over the past decade.
A list of about 7,000 billionaires from the past 25 years, assembled from Forbes, Hurun and Gapminder data, classifies wealth as "uncompetitive" when it mainly comes from industries such as gambling, construction, defence and raw materials, which often depend on political access.
The uncompetitive share of billionaire wealth, which counts inheritors, rose slightly from 2001 to 2014, and the total wealth derived from uncompetitive sectors has declined since 2021.

Another Reason the Labor Share Keeps Falling: Taxes!

Owen Zidar and Eric Zwick The Everywhere Millionaire

Date Posted:: July 1, 2026
Is Database:: Database
Is Important:: Important

Zidar & Zwick suggest about one‑third of the post‑1970s drop in labor’s share is due to stock‑based pay to workers, in addition to the one‑third they already attribute to pass‑through income. That leaves only around one‑third for genuine shifts in technology, power, etc.

In our data for 2017, after adjustments for the rise of pass-throughs, we report employee compensation of $7.2 trillion and corporate value added of $12.2 trillion. The unadjusted corporate profits number (which excludes partnership profits) is $1.7 trillion. If we could find around $200 billion of “missing” labor compensation, that would account for about a third of the fall in the labor share since the late 1970s. Thus, if workers owned a bit above 10% of those corporate profits via stock compensation, then that would cover the difference. Distributing this amount across the top 10% of public company employees, of which there are 4.2 million, this ownership would imply an additional $40,000 or so in pay. The aggregate numbers are thus quite plausible in terms of how much pay might have shifted to corporate profits serving as tax-preferred payments to high earners.

Takeaways by Macro Roundup^® AI

The authors report 2017 employee compensation of $7.2 trillion against corporate value added of $12.2 trillion after adjusting for the rise of pass-throughs, with unadjusted corporate profits, which exclude partnership profits, at $1.7 trillion.
The authors estimate that roughly $200 billion of "missing" labor compensation would account for about a third of the fall in the labor share since the late 1970s, a sum covered if workers owned somewhat above 10% of corporate profits via stock compensation.
Spread across the 4.2 million employees in the top 10% of public company workforces, that amount would imply about $40,000 in additional pay each, which the authors consider plausible as pay shifted into corporate profits serving as tax-preferred payments to high earners.

Do Past Wealth Gaps Explain Modern Inequality? Evidence From Immigration To The United States

Brian Marein Wake Forest University

Date Posted:: June 30, 2026
Is Database:: Database
Is Important:: Important

Except possibly at the very top of the distribution which SIPP cannot measure, the wealth of “new” Southern and Eastern European immigrants to the US has fully caught up with “old” immigrants. Wealth converges quickly once earnings inequality vanishes.

Inferring the determinants of long-run inequality from group-level data is complicated by the arrival of 30 million Europeans during the Age of Mass Migration (roughly 1850 to 1924), who are by construction included in average white wealth despite having no direct claim to the wealth accumulated by earlier Americans. By1920, nearly half of white adults were either foreign-born or had foreign-born parents. Using the United States Immigration Commission Reports (commonly known as the Dillingham Commission Reports), I document that immigrants at the turn of the twentieth century arrived with almost no wealth. [Thus] a large share of the white population started from a substantial wealth disadvantage. Northwestern Europeans comprised the overwhelming majority of earlier immigrants, dating back to the initial European settlement of North America, while Southern and Eastern Europeans predominated at the turn of the twentieth century. If initial wealth disadvantages persisted across generations, one would expect households of Southern or Eastern European ancestry to possess less wealth than those of Northwestern European ancestry, since their families arrived later and started with substantially fewer resources. In fact, they do not. On average, they are wealthier.

Takeaways by Macro Roundup^® AI

Households of Southern or Eastern European ancestry, whose families arrived later and with substantially fewer resources, are on average wealthier than those of Northwestern European ancestry, contrary to what persistent initial wealth disadvantages would predict.
Roughly 30 million Europeans arrived during the Age of Mass Migration, spanning about 1850 to 1924, and by 1920 nearly half of white adults were foreign-born or had foreign-born parents, yet all are included in average white wealth.
The United States Immigration Commission Reports, known as the Dillingham Commission Reports, indicate that immigrants at the turn of the twentieth century arrived with almost no wealth, so a large share of the white population started from a substantial wealth disadvantage.

Real hourly compensation is above 2019 levels but below the 2015-19 trend line. @JosephPolitano