Skip to Main content Skip to Navigation
Journal articles

Twenty Years of Rising Inequality in U.S. Lifetime Labour Income Values

Abstract : In this paper we study the evolution of lifetime labour income inequality by constructing present value life cycle measures that incorporate both earnings and employment risk. We find that, even though lifetime income inequality is 40% less than earnings inequality, the total increase in lifetime income inequality over the past 20 years is the same as earnings inequality. While the total increase is the same, the pathways there differ with earnings inequality experiencing a steady increase and lifetime income inequality increasing in spurts particularly in the latter half of the 1990s. Finally, we find the changes in lifetime income inequality are primarily driven by changes in earnings mobility and changes in the earnings distribution itself, changes in employment risk and the composition of the sample, such as the shift toward attaining more education and the ageing population, do not play a large role.
Document type :
Journal articles
Complete list of metadata
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Friday, November 5, 2021 - 12:45:06 PM
Last modification on : Friday, April 29, 2022 - 10:12:39 AM




Audra Bowlus, Jean-Marc Robin. Twenty Years of Rising Inequality in U.S. Lifetime Labour Income Values. Review of Economic Studies, Oxford University Press (OUP), 2004, 71 (3), pp.709 - 742. ⟨hal-03416773⟩



Record views