The Myth of Stagnant Income
|
Posted By: How May I Help You NC on April 28, 2017 This paper by Bruce Sacerdote is worth noting: Despite the large increase in U.S. income inequality, consumption for families at the 25th and 50th percentiles of income has grown steadily over the time period 1960-2015. The number of cars per household with below median income has doubled since 1980 and the number of bedrooms per household has grown 10 percent despite decreases in household size. The finding of zero growth in American real wages since the 1970s is driven in part by the choice of the CPI-U as the price deflator; small biases in any price deflator compound over long periods of time. Using a different deflator such as the Personal Consumption Expenditures index (PCE) yields modest growth in real wages and in median household incomes throughout the time period. Accounting for the Hamilton (1998) and Costa (2001) estimates of CPI bias yields estimated wage growth of 1 percent per year during 1975-2015. Meaningful growth in consumption for below median income families has occurred even in a prolonged period of increasing income inequality, increasing consumption inequality and a decreasing share of national income accruing to labor. http://gregmankiw.blogspot.com/ If you enjoyed this article, Join HBCU CONNECT today for similar content and opportunities via email! |
 |
How May I Help You NC
Management, See Moss Interactive Bellarmine University class of 2021 Member Since January 2011 |
Comments
More From This Author
Latest Career Content
 |
Spending time in a GARAGE Build it Guard it Design it Man Cave itHow many different types of Garages are under construction as we read?
👷🏽♂️Architects
“ How much does an Architectural Intern make in Columbus, Ohio?
As of Feb ...more
How May I Help You NC • 96 Views • February 12th, 2026 |
 |
Unlock Your Entrepreneur Journey — NEXT GEN Info SessionDate & TimeTuesday, February 1710:00 AM PST / 12:00 PM CST / 1:00 PM ESTVirtual EventREGISTER HERE:https://events.teams.microsoft.com/event/a...Tuesday, March 1710:00 AM PST / 12:00 PM CST / 1:00 ...more
Laura Van Brackle Sims • 277 Views • February 9th, 2026 |
 |
Love a little help from my friend: Stevie WonderCurator: Sami YenigunStevie Wonder needs little introduction. His awards and achievements — 25 Grammy Awards, a place in the Rock and Roll Hall of Fame, more than 100 million records sold worldwide — ...more
How May I Help You NC • 318 Views • February 9th, 2026 |
 |
YouTube CEO — 4 Big Priorities for 2026 Neal Mohan@YouTube CEO @nealmohan talks with YouTube Liaison @ReneRitchie about his four big priorities for 2026, including:
⭐️ Reinventing entertainment: Cre ...more
How May I Help You NC • 389 Views • February 8th, 2026 |
Popular Career Content
 |
PAID, federal internships with the Federal Diversity Internship Initiative!The Washington Center Federal Diversity Internship Initiative Now is your chance to apply for paid fall internships with the Federal Diversity Internship Initiative! This is your once-in-a-lifetime op ...more
Reginald Culpepper • 41,907 Views • June 14th, 2017 |
 |
Today's Success Tip: Joachim de Posada says, Don't eat the marshmallow...yetWe were invited to the National Association of African Americans in Human Resource's reception held at the
Atlanta Marriott Marquis during the SHRM conference, and the gift/tip we walked away with w ...more
How May I Help You NC • 41,010 Views • June 29th, 2012 |
