Trend Toward Equality in the Distribution of Net Income: A Reexamination of Data and Methodology

摘要

This paper takes issue with Egar Browning's recent claim that the size distribution of family income in the United States is substantially more equal than is popularly believed. The paper consists of six sections. Sections I through IV, for the most part, accept Browning's basic methodology but employ a more detailed analysis of available data which alters his basic income concept and leads to a rejection of his attempts to adjust the data for differences in family size. An alternative estimate of the size distribution of revised net income is thereby obtained. Section V directly criticizes Browning's methodology, calling into question his estimates of income inequality. The first criticism relates to his omission of unrelated individuals, the second to the recipient value of in - kind transfers, and the third to the reranking of families as adjustments to income are performed. Section VI reviews the counterevidence, adjusts for methodological defects, and makes an assessment of the level and trend in income inequality over the last 35 years. These adjustments in Browning's methodology affect the trend toward equality of distribution of net income --- whereas Browning finds that the income share of the lowest quintile of families increased by 61.5 percent from 1952 to 1972, the final adjusted figures indicate an increase of only 18.1 percent over this same period. Tables are presented within the text and appendix. A list of references is provided.