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Abstract

How the Distribution of After-Tax Income Changed Over the 1990s Business Cycle: A Comparison of the United States, Great Britain, Germany and Japan
by Richard V. Burkhauser, Takashi Oshio and Ludmila Rovba
WP 2006-145
We find that, over their 1990s business cycles, the entire distribution of after-tax household size-adjusted income moved to the right in the United States and Great Britain while inequality declined. In contrast, Germany and Japan had less income growth, a rise in inequality and a decline in the middle mass of their distributions that spread mostly to the right, much like the United States experienced over its 1980s business cycle.  In the United States and Japan, younger persons fared relatively better than older persons while the opposite was the case in Great Britain and Germany. 
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