Is Income Inequality Really Shrinking?
Posted at 12:47 p.m. on April 22, 2014
James Petholoukis of the American Enterprise Institute takes note of economist Michael Feroli’s analysis of wage growth.
“In particular, the 90-10 ratio compares earnings of workers in the top decile with those in the bottom decile and is sometimes used as a proxy for income inequality.”
“When the series began in 2000, workers in the top earnings decile earned 4.4 times as much in a usual week compared with workers in the bottom decile. The 90-10 ratio then steadily increased until it topped out at 5.3 in 2012Q3. Since then the ratio has come back down to 5.0 last quarter.”