Hollowing Out: The Channels of Income Polarization in the United States

Alichi, Ali; Mariscal, Rodrigo; Muhaj, Daniela

doi:10.5089/9781484328293.001

IMF Working Papers

2017

DOI: 10.5089/9781484328293.001

|View full text |Cite

Hollowing Out: The Channels of Income Polarization in the United States

Ali Alichi

Rodrigo Mariscal²,

Daniela Muhaj³

Abstract: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2018

2019

Publication Types

Select...

Article3

Relationship

Self Cite0

Independent3

Authors

Journals

Cited by 3 publications

(2 citation statements)

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The GE(0) ranges from 0 (complete equality) to larger positive values of increasing inequality. The hollowing-out index was recently defined byAlichi et al (2017); its goal is to measure the weight of the middle class in society, with larger values indicating greater inequality.©International Monetary Fund. Not for Redistribution…”

mentioning

confidence: 99%

Manufacturing Jobs and Inequality

Novta

Pugacheva²

2019

IMF Working Papers

View full text Add to dashboard Cite

We examine the extent to which declining manufacturing employment may have contributed to increasing inequality in advanced economies. This contribution is typically small, except in the United States. We explore two possible explanations: the high initial manufacturing wage premium and the high level of income inequality. The manufacturing wage premium declined between the 1980s and the 2000s in the United States, but it does not explain the contemporaneous rise in inequality. Instead, high income inequality played a large role. This is because manufacturing job loss typically implies a move to the service sector, for which the worker is not skilled at first and accepts a low-skill wage. On average, the associated wage cut increases with the overall level of income inequality in the country, conditional on moving down in the wage distribution. Based on a stylized scenario, we calculate that the movement of workers to low-skill service sector jobs can account for about a quarter of the increase in inequality between the 1980s and the 2000s in the United States. Had the U.S. income distribution been more equal, only about one tenth of the actual increase in inequality could have been attributed to the loss of manufacturing jobs, according to our simulations.

show abstract

mentioning

confidence: 99%

Manufacturing Jobs and Inequality

Novta

Pugacheva²

2019

IMF Working Papers

View full text Add to dashboard Cite

show abstract

mentioning

confidence: 99%

Manufacturing Jobs and Inequality: Why is the U.S. Experience Different?

Novta¹,

Pugacheva²

2019

SSRN Journal

View full text Add to dashboard Cite

show abstract

The Tax Cuts and Jobs Act: An Appraisal

Chalk¹,

Keen²,

Perry³

2018

IMF Working Papers

View full text Add to dashboard Cite

This paper assesses the landmark Tax Cuts and Jobs Act (TCJA), from the perspective of both the U.S. itself and the wider world. The reform has many positive aspects including steps to broaden the base of, and reduce marginal rates under, the personal income tax (PIT), reduce distortions to investment and financing decisions, and mitigate outward profit shifting. But the TCJA has a large fiscal price tag and leaves significant uncertainty as to how the U.S. tax system will develop. The PIT changes could have better targeted relief at low earners, and there is scope to more fully address distortions in business taxation. The novel international provisions create a complex array of both positive and negative international spillovers, and have the potential to significantly reshape the wider international tax system.

show abstract

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

hi@scite.ai

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Hollowing Out: The Channels of Income Polarization in the United States

Cited by 3 publications

References 23 publications

Manufacturing Jobs and Inequality

Manufacturing Jobs and Inequality

Manufacturing Jobs and Inequality: Why is the U.S. Experience Different?

The Tax Cuts and Jobs Act: An Appraisal

Contact Info

Product

Resources

About