Income inequality in the United States has increased significantly since the 1970s after several decades of stability, meaning the share of the nation's income received by higher income households has increased.
This trend is evident with income measured both before taxes (market income) as well as after taxes and transfer payments. income inequality is comparable to other developed countries before taxes and transfers, but is among the highest after taxes and transfers, meaning the U. shifts relatively less income from higher income households to lower income households.
S., where income inequality is worse but the concern is lower.
The influence of the labor movement has waned in the U. since the 1960s along with union participation and more pro-capital laws.
To put this change into perspective, if the US had the same income distribution it had in 1979, each family in the bottom 80% of the income distribution would have ,000 more per year in income on average, or 6 per month. federal tax and transfer policies are progressive and therefore substantially reduce income inequality measured after taxes and transfers.
found that the top earning 1 percent of households increased their income by about 275% after federal taxes and income transfers over a period between 19, compared to a gain of just under 40% for the 60 percent in the middle of America's income distribution. They became moderately less progressive between 19 There is a direct relationship between actual income inequality and the public's views about the need to address the issue in most developed countries, but not in the U.
and has been the subject of study of many scholars and institutions. The top 1% is not homogeneous, with the very top income households pulling away from others in the top 1%.
For example, the top 0.1% of households received approximately 10% of the pre-tax income in 2013, versus approximately 3–4% between 1951–1981.
others have warned against the current high levels of inequality, including Yale Nobel prize for economics winner Robert J.