Skip to main content

The Macro Model of the Inequality Process and The Surging Relative Frequency of Large Wage Incomes

  • Chapter
Econophysics of Markets and Business Networks

Part of the book series: New Economic Windows ((NEW))

Abstract

Revision and extension of a paper, ‘U.S. wage income since 1961: the perceived inequality trend’, presented to the annual meetings of the Population Association of America, March–April 2005, Philadelphia, Pennsylvania, USA. On-line at: http://paa2005.princeton.edu/download.aspx?submission ID=50379.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Angle J (1983) The surplus theory of social strati.cation and the size distribution of Personal Wealth. Proc. Am. Stat. Assoc., Social Statistics Section. Pp. 395–400. Alexandria, VA: Am. Stat. Assoc.

    Google Scholar 

  2. Angle J (1986) The surplus theory of social strati.cation and the size distribution of Personal Wealth. Social Forces 65:293–326.

    Article  Google Scholar 

  3. Angle J (1993) Deriving the size distribution of personal wealth from ‘the rich get richer, the poor get poorer’. J. Math. Sociology 18:27–46.

    Article  MATH  ADS  Google Scholar 

  4. Angle J (1994) Frequency spikes in income distributions. Proc. Am. Stat. Assoc., Business and Economic Statistics Section, pp. 265–270.

    Google Scholar 

  5. Angle J (1996) How the gamma law of income distribution appears invariant under aggregation. J. Math. Sociology. 21:325–358.

    Article  MATH  Google Scholar 

  6. Angle J (2002) The statistical signature of pervasive competition on wages and salaries. J. Math. Sociology. 26:217–270.

    Article  MATH  Google Scholar 

  7. Angle J (2002) Modeling the dynamics of the nonmetro distribution of wage and salary income as a function of its mean. Proc. Am. Stat. Assoc., Business and Economic Statistics Section. [CD-ROM], Alexandria, VA: Am. Stat. Assoc.

    Google Scholar 

  8. Angle J (2003) The dynamics of the distribution of wage and salary income in the nonmetropolitan U.S.. Estadistica 55:59–93.

    MathSciNet  Google Scholar 

  9. Angle J (2005) U.S. wage income since 1961: the perceived inequality trend. Paper presented to the Population Assoc. of America meetings, March–April 2005, Philadelphia, Pennsylvania, USA. http://paa2005.princeton.edu/download.aspx?submissionID=50379.

  10. Angle J (2006) (received 8/05; electronic publication: 12/05; hardcopy publication 7/06). The Inequality Process as a wealth maximizing algorithm. Physica A 367:388–414.

    Article  ADS  Google Scholar 

  11. Beach C, Slotsve G (1996) Are we becoming two societies? Income Polarization and the Myth of the Declining Middle Class in Canada. Ottawa, Ontario: C.D. Howe Institute.

    Google Scholar 

  12. Beach C, Chaykowski R, Slotsve G (1997). Inequality and polarization of male earnings in the United States, 1968–1990. North Am. J. Econ. Fin. 8(2):135–152.

    Article  Google Scholar 

  13. Blackburn M, Bloom D (1985) What is happening to the middle class?. Am. Demographics 7(1):18–25.

    Google Scholar 

  14. Blackburn M, Bloom D (1987) Earnings and income inequality in the United States. Population and Development Review 13:575–609.

    Article  Google Scholar 

  15. Bradbury K (1986) The Shrinking Middle Class. New England Economic Review, September/October, pp. 41–54.

    Google Scholar 

  16. Burkhauser R, Crews Cutts A, Daly M, Jenkins S (1999) Testing the significance of income distribution changes over the 1980’s business cycle: a cross-national comparison. J. Appl. Econometrics 14(3):253–272.

    Article  Google Scholar 

  17. Chakraborti A, Chakrabarti BK (2000) Statistical mechanics of money: how saving propensity affects its distribution. Eur. Phys. J. B 17: 167–170.

    Article  ADS  Google Scholar 

  18. Chatterjee A, Chakrabarti BK, Manna SS (2003) Money in gas-like markets: Gibbs and Pareto Laws. Phys. Scripta T 106: 36–39.

    Article  ADS  Google Scholar 

  19. Chatterjee A, Chakrabarti BK, Manna SS (2004) Pareto Law in a kinetic model of market with random saving propensity Physica A 335: 155–163.

    Article  ADS  MathSciNet  Google Scholar 

  20. Chatterjee A, Chakrabarti BK, Stinchcombe RB (2005) Master equation for a kinetic model of trading market and its analytic solution Phys. Rev. E 72: 026126.

    Article  ADS  Google Scholar 

  21. Chatterjee A, Chakrabarti BK, Stinchcombe RB (2005) Analyzing money distributions in ‘ideal gas’ models of markets. Practical Fruits of Econophysics, Ed. Takayasu H, pp 333–338, Springer-Verlag, Tokyo.

    Google Scholar 

  22. Coder J, Rainwater L, Smeeding T (1989) Inequality among children and elderly in ten modern nations: the United States in an international context. Am. Econ. Review 79(2): 320–324.

    Google Scholar 

  23. Current Population Surveys, March 1962–2004. [machine readable data files]/conducted by the Bureau of the Census for the Bureau of Labor Statistics. Washington, DC: U.S. Bureau of the Census [producer and distributor], 1962–2004. Santa Monica, CA: Unicon Research Corporation [producer and distributor of CPS Utilities], 2004.

    Google Scholar 

  24. Duclos J, Esteban J, Ray D (2004) Polarization: concepts, measurement, estimation. Econometrica 72(6):1737–1772.

    Article  MATH  MathSciNet  Google Scholar 

  25. Duncan G, Smeeding T, Rodgers W (1993) Why is the middle class shrinking?. In Papadimitriou D. (ed.), Poverty and Prosperity in the U.S. in the Late Twentieth Century. New York, Macmillan.

    Google Scholar 

  26. Esteban J, Ray D (1994) On the measurement of polarization. Econometrica 62(4): 819–851.

    Article  MATH  Google Scholar 

  27. Esteban J, Ray D (1999) Conflict and distribution. J. Econ. Theory 87: 379–415.

    Article  MATH  MathSciNet  Google Scholar 

  28. Horrigan M, Haugen S (1988) The declining middle class thesis: a sensitivity analysis. Monthly Labor Review 111(May, 1988): 3–13.

    Google Scholar 

  29. Jenkins S (1995) Did the middle class shrink during the 1980’s: UK evidence from kernel density estimates. Econ. Letters 49(October, #4): 407–413.

    Article  MATH  Google Scholar 

  30. Kuttner R (1983) The Declining Middle. Atlantic Monthly July:60–72.

    Google Scholar 

  31. Lawrence R (1984) Sectoral Shifts in the Size of the Middle Class. Brookings Review 3: 3–11.

    Article  Google Scholar 

  32. Levy F, Michel R (1991) The Economic Future of American Families: Income and Wealth Trends. Washington, DC: Urban Institute Press.

    Google Scholar 

  33. Levy F, Murnane R (1992) U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations. Journal of Economic Literature 30(3): 1333–1381.

    Google Scholar 

  34. Morris M, Bernhardt A, Handcock M (1994) Economic inequality: new methods for new trends. Am. Soc. Review 59: 205–219.

    Article  Google Scholar 

  35. Roemer M (2000) Assessing the Quality of the March Current Population Survey and the Survey of Income and Program Participation Income Estimates, 1990–1996. Washington, DC: U.S. Census Bureau. [http://www.census.gov/hhes/www/income/assess1.pdf], accessed 11/9/04.

    Google Scholar 

  36. Patriarca M, Chakraborti A, Kaski K (2004) Statistical model with a standard Γ distribution. Phys. Rev. E 70: 016104.

    Article  ADS  Google Scholar 

  37. Patriarca M, Chakraborti A, Kaski K, Germano G (2005) Kinetic theory models for the distirbution of wealth. arXiv:physics/0504153.

    Google Scholar 

  38. Thurow L (1984) The disappearance of the middle class. New York Times Vol.133(February 5):F3.

    Google Scholar 

  39. Unicon Research, inc. 2004. Manual for March Current Population Surveys. Santa Monica, CA: Unicon.

    Google Scholar 

  40. U.S. Bureau of Economic Analysis. 2005. National Income and Product Account Table 2.4.4, Price indexes for personal conumption expenditure by type of product [index numbers, 2000 = 100]. http://www.bea.gov/bea/dn/ nipaweb/TableView.asp#Mid [Last revised on August 4, 2005].

  41. Weinberg D, Nelson C, Roemer M, Welniak E (1999) Fifty years of U.S. income data from the Current Population Survey. Am. Econ. Review 89(#2) (Papers and Proceedings of the 111th Annual Meeting of the Am. Econ. Assoc.), 18–22.

    Article  Google Scholar 

  42. Wolfson M (1994) When inequalities diverge. Am. Econ. Review 84(#2):353–358.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Springer-Verlag Italia

About this chapter

Cite this chapter

Angle, J. (2007). The Macro Model of the Inequality Process and The Surging Relative Frequency of Large Wage Incomes. In: Chatterjee, A., Chakrabarti, B.K. (eds) Econophysics of Markets and Business Networks. New Economic Windows. Springer, Milano. https://doi.org/10.1007/978-88-470-0665-2_14

Download citation

Publish with us

Policies and ethics