Appendix Table 1A:
Decomposition of Gini Coefficient by Welfare Era: 1968-2016 March Current Population Survey
| Unadjusted
Estimates |
Family Structure
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 |
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 | 87.5% | 84.7% | 83.6% | 83.9% | 80.5% | 88.5% | 87.0% | 86.6% | 86.7% | 84.0% |
| Welfare | 1.3% | 1.4% | 1.3% | 0.7% | 0.5% | 1.0% | 0.8% | 0.8% | 0.4% | 0.3% |
| Investment | 1.7% | 2.3% | 2.2% | 2.6% | 2.1% | 1.7% | 2.4% | 2.4% | 2.8% | 2.3% |
| Other Income | 4.3% | 4.9% | 5.0% | 4.6% | 5.0% | 4.2% | 4.7% | 4.7% | 4.3% | 4.6% |
| In Kind | 5.2% | 6.7% | 7.9% | 8.2% | 11.8% | 4.6% | 5.1% | 5.5% | 5.8% | 8.7% |
| Gini Coefficient (Gk) | ||||||||||
| Total Income | 0.30 | 0.32 | 0.33 | 0.34 | 0.34 | 0.29 | 0.30 | 0.30 | 0.32 | 32.4% |
| Earned | 0.36 | 0.41 | 0.43 | 0.43 | 0.45 | 0.34 | 0.37 | 0.38 | 0.39 | 41.2% |
| Welfare | 0.94 | 0.93 | 0.93 | 0.95 | 0.96 | 0.96 | 0.95 | 0.96 | 0.97 | 97.5% |
| Investment | 0.96 | 1.00 | 0.97 | 0.95 | 0.96 | 0.96 | 0.99 | 0.96 | 0.94 | 95.0% |
| Other Income | 0.86 | 0.84 | 0.84 | 0.85 | 0.85 | 0.87 | 0.84 | 0.85 | 0.86 | 85.9% |
| In Kind | 0.80 | 0.83 | 0.81 | 0.79 | 0.74 | 0.80 | 0.84 | 0.83 | 0.82 | 77.5% |
| Correlation (Rk) | ||||||||||
| Earned | 0.92 | 0.91 | 0.91 | 0.92 | 0.90 | 0.93 | 0.91 | 0.92 | 0.93 | 91.4% |
| Welfare | −0.39 | −0.37 | −0.35 | −0.31 | −0.26 | −0.38 | −0.33 | −0.32 | −0.30 | −25.9% |
| Investment | 0.54 | 0.53 | 0.58 | 0.61 | 0.66 | 0.53 | 0.51 | 0.54 | 0.58 | 63.0% |
| Other Income | −0.02 | 0.02 | 0.08 | 0.10 | 0.12 | −0.03 | −0.01 | 0.05 | 0.08 | 9.6% |
| In Kind | 0.08 | −0.08 | −0.15 | −0.19 | −0.06 | 0.09 | −0.10 | −0.21 | −0.27 | −14.1% |
| Estimated Impact of Income Components on Total Inequality | ||||||||||
| Proportionate Contribution to Total Inequality | ||||||||||
| Earned | 97.9% | 98.7% | 99.4% | 98.6% | 96.5% | 97.5% | 98.5% | 99.2% | 98.7% | 97.7% |
| Welfare | −1.7% | −1.5% | −1.3% | −0.6% | −0.4% | −1.3% | −0.9% | −0.8% | −0.4% | −0.3% |
| Investment | 2.9% | 3.9% | 3.9% | 4.5% | 4.0% | 3.0% | 4.1% | 4.1% | 4.8% | 4.3% |
| Other Income | −0.3% | 0.2% | 1.1% | 1.2% | 1.5% | −0.4% | −0.2% | 0.7% | 0.9% | 1.2% |
| In Kind | 1.1% | −1.4% | −3.0% | −3.7% | −1.6% | 1.1% | −1.5% | −3.2% | −4.0% | −2.9% |
| Elasticity | ||||||||||
| Earned | 0.105 | 0.140 | 0.158 | 0.147 | 0.160 | 0.091 | 0.115 | 0.125 | 0.120 | 0.136 |
| Welfare | −0.030 | −0.028 | −0.025 | −0.013 | −0.008 | −0.023 | −0.017 | −0.015 | −0.008 | −0.006 |
| Investment | 0.013 | 0.016 | 0.016 | 0.019 | 0.018 | 0.013 | 0.016 | 0.017 | 0.020 | 0.020 |
| Other Income | −0.046 | −0.047 | −0.040 | −0.035 | −0.035 | −0.046 | −0.049 | −0.041 | −0.034 | −0.035 |
| In Kind | −0.042 | −0.080 | −0.109 | −0.119 | −0.135 | −0.035 | −0.065 | −0.087 | −0.097 | −0.116 |