Title: A comprehensive view of income inequality
Authors: Christopher Otrok - University of Missouri and FRB St Louis (United States) [presenting]
Abstract: A new dataset is built that measures income percentiles by demographic group. Our groups are based on gender, education and race. We find that there are large differences in changes in income inequality across demographic groups. Further, the role that demographic factors play depends on the percentile of the income distribution. We then develop a dynamic factor model that captures both demographic-specific factors as well as income-quantile specific factors. We then embed this factor model in a VAR to identify the structural sources of inequality by demographic/income group.