Third, the most marked changes in the degree of polarization among
men’s earnings occurred during the two major recessions and particularly
over the recession period of 1989-92. In general, earnings polarization
increased during recessions (with the biggest increases occurring among low
earners) and attenuated during economic expansions (with again the biggest
adjustments occurring among low earners) with high earners relatively
insulated from such cyclical fluctuations (see Figure 1). But over the full
Table 2: Cross-Sectional Polarization Changes for
Men and Women, Selected Years, 1982-1996
(percentage point changes)
1982- 1983- 1989- 1992- 1982-
1983 1989 1992 1996 1996
All Workers
|
- Beyond 50% of median1 |
2.1 |
-2.2 |
3.0 |
0.1 |
3.0 (5.7%) |
|
- Change in VL and VH2 |
1.6 |
-1.2 |
2.7 |
0.7 |
3.8 (15.6%) |
|
- Change in VL and L3 |
1.3 |
-1.4 |
1.9 |
-0.1 |
1.7 |
|
- Change in VL5 |
0.8 |
-1.0 |
1.4 |
0.0 |
1.2 |
|
- Change in VH and H4 |
0.8 |
-0.8 |
1.1 |
0.2 |
1.3 |
|
- Change in VH6 |
0.8 |
-0.2 |
1.3 |
0.7 |
2.6 |
|
Men | |||||
|
- Beyond 50% of median |
2.6 |
-2.6 |
3.2 |
-0.5 |
2.7 (4.7%) |
|
- Change in VL and VH |
2.0 |
-1.2 |
3.2 |
0.8 |
4.8 (17.5%) |
|
- Change in VL and L |
1.7 |
-1.9 |
3.9 |
-0.3 |
3.4 |
|
- Change in VL |
0.8 |
-1.2 |
2.4 |
-0.1 |
1.9 |
|
- Change in VH and H |
0.9 |
-0.7 |
-0.7 |
-0.2 |
-0.7 |
|
- Change in VH |
1.2 |
0.0 |
0.8 |
0.9 |
2.9 |
|
Women | |||||
|
- Beyond 50% of median |
1.2 |
-0.2 |
2.4 |
1.0 |
4.4 (9.5%) |
|
- Change in VL and VH |
0.8 |
-0.3 |
2.1 |
0.6 |
3.2 (16.1%) |
|
- Change in VL and L |
0.3 |
-1.1 |
-1.3 |
0.0 |
-2.1 |
|
- Change in VL |
0.5 |
-1.0 |
-0.2 |
0.0 |
-0.7 |
|
- Change in VH and H |
0.9 |
0.9 |
3.7 |
1.0 |
6.5 |
|
- Change in VH |
0.3 |
0.7 |
2.3 |
0.6 |
3.9 |
Notes: Λ(P-.∙P rΛ(P..∙P-...i
462
Charles M. Beach and Ross Finnie
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