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Inc wage wealth summary 08-09 2nd

Inc wage wealth summary 08-09 2nd - Income Wages& Wealth...

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Unformatted text preview: Income Wages & Wealth: Income OR OR “Playin’ with Tables!” Social Work 206 Social Social Policy Week 3 lecture Before we look at income distribution tables: notes on statistical terminology notes Economics Terminology Some Recession (& Recovery … the “cyclical economy”) Inflation (consumer price index) Unemployment (and the notion of workforce “participation”) (and Productivity (and productivity growth) How productivity growth can hurt (in short run) and help (in long run). How How monetary policy (setting of interest rates) influences the pace of economic growth. How The double-edged sword of cutting interest rates The Prime Interest Rate (and the notion of “monetary” policy) Statistical Terminology Mean vs. Median Income Income Distribution by “Quintiles” Per Capita vs. Household Income vs. Family Income measures Learning Objectives Learning 1. a. b. Reading Tables Reading Tables with oodles of data Reading a Table with oodles of beautiful data and figuring out what Reading “Story” is being told “Story” 2. 3. Learning what quantitative data can teach us about Learning economic inequality (and what it can’t). (and Learning about how different types of data can tell slightly Learning different stories about stuff (in this case about economic inequality in American over the last century). 4. 4. Learning how INCOME data, WAGES data, and WEALTH Learning data all tell slightly different stories data a. Specifically, learning how the choice of data that one uses to answer Specifically, a question MATTERS (i.e. that, depending on your question, SOME types of data are better than other types). The (quantitative) facts about economic inequality The Five Big Questions 1. 1. How is income (& wages, & wealth) distributed across the How population (measured in family units), as ranked by economic class? economic How has the distribution of income (& wages, & wealth) How CHANGED over time? What do does the distribution of income (& wages, & What wealth) look like across racial categories? i.e. income (& wage, & wealth) inequality by race. wage, How does income data, wage data and wealth data give us How different “angles” on this story? Finally, but only cursorily for now: Why do these Finally, distributions look the way they do? distributions 2. 3. 3. 4. 5. 5. Income Income Real Family Income by Quintile (upper limit of each quintile) 1947-2006 upper 1947-2006 Shares of Family Income by Income Quintile (& the top 5%), selected years 1947-2006 Real Family Income Growth by Quintiles: A look at three different economic eras different Productivity and real median family income growth, 1947-2006 Median family income by race/ethnic group, 19472007(2007 dollars) Share of Recent Growth to Selected Income Brackets Wages Why is Wage Data a clearer, cleaner, more accurate way to Why measure and assess change in the economic well-being of American Workers (compared to INCOME data)? American What is it that INCOME data usually obscures (which wage data—hourly What wage data that is—does not obscure)? wage What has been the basic trend in wage data of American What Workers over time? That is: how would characterize what’s been going on in the 1973-present period? What’s the OVERALL wage data story? What’s the MALE wage data story? What’s the FEMALE wage data story? (or rather: “stories”… there’s two) (or What’s What’s the difference btw the M and F stories? If we’re trying to get a gauge on the TREND in wages, relative If to productivity and overall economic growth, why is MALE wage data a more accurate (or relevant to the question) indicator? Looking at Inequality by Examining Wage Data Wage Wage Data: ALL workers by income deciles (selected years, 1973-2007) (selected Wealth Wealth Measures of Wealth tell us something that measures Measures of income and measures of wages do not account for: The ACCUMULATION of earnings over TIME The effect of HISTORY; in two ways 1. 2. 2. 3. 3. The effect of land & capital ownership, established in the past The (often under patently unjust distributions of those assets. The effect of past EXCLUSION of land & capital accumulation The (i.e. who did & did not get at the very least “40 acres & a mule”…. Let alone the deeds to vast, wealth-producing properties). That is to say, most of the radical disparity in Wealth between That whites and non-white people, particularly Black Americans, is explained by the exclusion of the latter (by whites) from the original distribution of valuable property. original The Distribution of Wealth is far more disparate than the distribution of Income disparate The Distribution of Wealth, 1983-2004 The Changes in the Distribution of Wealth 1962-2004 by class status (and in percentage of overall wealth of the nation to each group) (and class Changes in the Distribution of Wealth 1962-2004 by class status (& in inflation controlled $ figures) class Summary Points, or The Main “Stories” that the data tell The 1. America has fairly skewed (unequal) distribution of income, wages & America wealth wealth That distribution is significantly skewed UPWARD (i.e. towards That concentration of income, wages and wealth in the hands of the top 20% of the distribution of • 2. And even more pointedly, in recent years, its skewed toward the top 5%, even the top 1% of the And distribution. distribution. Notably (though not shown in these tables): income (& wage… less so wealth) inequality in the Notably U.S. is far greater than the OECD (remember them? The big industrialized nations…) average. • 3. 3. 4. This inequality is reflected in inequality between whites and most nonwhite groups. There are things that WAGE data tell us about inequality that INCOME There data sort of masks: namely, because more families have two (sometimes more) earners in the workforce income inequality doesn’t look as extreme because each family unit, on average, is working more HOURS each year. each • The SOCIAL JUSTICE POINT: families aren’t “better off” if the increases in earnings come only The from increased work. What matters is, if we want accurate comparisons over time, is: “What level of compensation are workers getting PER HOUR WORKED. PER Wages & Income Addendum: The Effect of Hours Worked & Race / Gender Comparisons Comparisons: Family Type Comparisons: The Effect of HOURS worked The The Effect of HOURS worked The ...
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