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Government Regulation and Income Inequality in the United States, 1970-1990

Applied Economics Letters, Vol. 5, pp. 805-808, 1998
2011
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  • 636
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Metric Options:   Counts1 Year3 Year

Metrics Details

  • Usage
    636
    • Abstract Views
      561
    • Downloads
      75
  • Ratings
    • Download Rank
      645,100

Paper Description

While many studies of income inequality in the United States focus on the significance of declining marginal tax rates in the 1980s, very little research to date has considered the effect of government regulations which have increased dramatically during the time of marked increases in the Gini coefficient. This paper presents a simple Ordinary Least Squares regression suggesting a relationship between government regulation and income inequality. It is suggested that increases in the regulatory burden in the US labor market increases the cost of low skilled labor relative to high skilled labor, contributing to increases in income inequality.

Bibliographic Details

Christopher Westley

tax policy; income inequality; regulation; Gini Coefficients

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