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Assessing the Effects of Wives' Earnings on Family Income Inequality

Cancian, Maria, Reed, Deborah·1998·Review of Economics and Statistics

Abstract

We argue that the effect of wives' earnings can be assessed meaningfully only by comparing the observed distribution of income with a reference distribution. The components of the standard decomposition of the Gini coefficient have no implicit reference distribution and therefore should not be interpreted as a measure of the effect of an income source on inequality. We suggest several intuitive counterfactual reference distributions and illustrate their use with 1979 and 1989 U.S. data. We conclude that wives' earnings reduced inequality in that the income distribution would have been less equal in their absence. Alternative measures of the impact have mixed results.

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Metadata

Authors
Cancian, M., & Reed, D.
Venue
Review of Economics and Statistics
Published
1998-02
Volume
80
Issue
1
Pages
73-79
ISSN
  • 0034-6535 (ISSN-L)
  • 1530-9142
OpenAlex
W2078668968
Cited by
178
References
0
FWCI
30.16
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Assessing the Effects of Wives' Earnings on Family Income Inequality. https://app.cochat.ai/papers/10.1162/003465398557348
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Cancian, M., & Reed, D. (1998). Assessing the Effects of Wives' Earnings on Family Income Inequality. Review of Economics and Statistics. https://doi.org/10.1162/003465398557348

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