Thursday, February 12, 2015

more fun with graphs

Median incomes decline before a recession, and continue to decline after the recession is over. What about per capita incomes?

Average incomes drop less steeply, for a shorter time.

It appears, in fact, that the median income drops surrounding recessions account for much of the rise in income inequality over the past thirty years. During full recovery periods (where median income is rising), the curves in the graph track fairly well. During recessions (broadly defined), the curves diverge.

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