Table 1:

Decomposition of Gini Coefficient by Welfare Era: 1968-2016 March Current Population Survey

	Family Structure and Demographic Adjusted Estimates
	Welfare Expansion 1968- 1980	AFDC Reform Era I 1981- 1987	AFDC Reform Era II 1981- 1995	PWORA Era Pre- Recession 1996- 2007	PWORA Era Post- Recession 2008- 2016
Components of Gini Decomposition
Share of Income (Sk)
Earned	87.7%	84.5%	82.4%	81.2%	74.2%
Welfare	1.2%	1.3%	1.3%	0.8%	0.6%
Investment	1.6%	2.1%	1.8%	1.8%	1.4%
Other Income	4.2%	4.8%	4.9%	4.4%	4.8%
In Kind	5.4%	7.4%	9.6%	11.7%	19.0%
Gini Coefficient (Gk)
Total Income	0.29	0.31	0.30	0.30	0.30
Earned	0.35	0.39	0.41	0.41	0.44
Welfare	0.95	0.94	0.93	0.95	0.96
Investment	0.97	1.00	0.99	0.98	0.99
Other Income	0.87	0.85	0.85	0.86	0.87
In Kind	0.80	0.83	0.80	0.76	0.69
Correlation (Rk)
Earned	0.92	0.89	0.88	0.88	0.83
Welfare	−0.35	−0.26	−0.22	−0.19	−0.15
Investment	0.54	0.53	0.57	0.62	0.66
Other Income	−0.03	0.01	0.07	0.12	0.14
In Kind	0.11	0.00	−0.04	−0.05	0.13
Estimated Impact of Income Components on Total Inequality
Proportionate Contribution to Total Inequality
Earned	97.4%	97.3%	97.5%	96.8%	89.8%
Welfare	−1.4%	−1.0%	−0.9%	−0.5%	−0.3%
Investment	2.8%	3.7%	3.4%	3.7%	3.1%
Other Income	−0.3%	0.1%	1.0%	1.5%	1.9%
In Kind	1.6%	−0.1%	−1.0%	−1.5%	5.5%
Elasticity
Earned	0.097	0.128	0.151	0.156	0.157
Welfare	−0.026	−0.023	−0.022	−0.013	−0.009
Investment	0.012	0.016	0.015	0.018	0.017
Other Income	−0.045	−0.046	−0.039	−0.029	−0.029
In Kind	−0.038	−0.074	−0.106	−0.132	−0.135