Accounting for Income Changes over the Great Recession (2007-2010) Relative to Previous Recessions: The Importance of Taxes and Transfers / Jeff Larrimore, Richard V. Burkhauser, Philip Armour.

Format:

Book

Author/Creator:

Larrimore, Jeff.

Contributor:

National Bureau of Economic Research.

Burkhauser, Richard V.

Armour, Philip.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19699.

NBER working paper series no. w19699

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Accounting for Income Changes over the Great Recession

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2013.

Summary:

With data from the March CPS and using shift-share analysis, we analyze the factors that account for changes in post-tax post-transfer income during each of the past four recessions. What distinguishes the Great Recession is that drops in employment rather than wage earnings drove income declines. In addition, taxes and transfers played a much greater role in offsetting market income losses --a result largely missed in analyses that do not account for taxes and transfers. This is particularly so among the bottom quintile of the distribution where lower and increased transfers offset more than one-half of the market income declines.

Notes:

Print version record

December 2013.