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Unformatted text preview: Slide 28 Recent Trends in Inequality ± Observations z From WWII to the 1970s income growth was almost 3%/yr for all groups. z From 1980-2000 the income growth of the bottom 20% was less than half of 1%. z Real income of the top 1% more then doubled from 1980 - 2000. Chapter 13: Labor Markets, Poverty, and Income Distribution Slide 29 Recent Trends in Inequality ± Observations z In 1980, CEOs earned 42 times as much as the average worker; today they earn 500 times as much. z The U.S. has a high degree of upward and downward economic mobility. Chapter 13: Labor Markets, Poverty, and Income Distribution Slide 30 Why is Income Inequality a Moral Problem? ± Choosing the Rules for Distributing Income z Assume ² A “veil of ignorance” ² National income is fixed ² Most people are risk adverse ± How should income be allocated?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08