Another Look at Whether a Rising Tide Lifts All Boats

  title={Another Look at Whether a Rising Tide Lifts All Boats},
  author={James R. Hines Jr. and Hilary Williamson Hoynes and Alan B. Krueger},
  journal={Macroeconomics eJournal},
Periods of rapid U.S. economic growth during the 1960s and 1970s coincided with improved living standards for many segments of the population, including the disadvantaged as well as the affluent, suggesting to some that a rising economic tide lifts all demographic boats. This paper investigates the impact of U.S. business cycle conditions on population well-being since the 1970s. Aggregate employment and hours worked in this period are strongly procyclical, particularly for low-skilled workers… 
Lifting All Boats?: The Evolution of Income and Wealth Inequality over the Path of Development
Does a rising tide lift all boats? This question – that is, to what extent does improvements of the general economy benefit all – is central to the study of economics and history. From fundamental
In this paper, we explore the cyclicality of the U.S. safety net over the 2000s through the economic peak in February 2020 before the onset of the COVID-19 crisis. We compare the effects of
IPR Policy Brief - What a drag: the chilling impact of unemployment on real wages
Research conducted in 2012 by Professors Paul Gregg (University of Bath) and Stephen Machin (University College London) on behalf of the Resolution Foundation, has found that the stagnation in real
Wage Resilience in France since the Great Recession
From 2009 onwards, the slowdown in French real wages was less acute than that in labour productivity, which pulled French firms margin rate down. This article deals with this recent disconnection and
Labor Market Trends and Outcomes: What Has Changed since the Great Recession?
This article describes 40 years of trends in wages and labor force participation for the “working class”—workers with a high school education or less—compared to workers with a college degree or
The State of the Safety Net in the Post-Welfare Reform Era
The passage of the 1996 welfare reform bill led to sweeping changes to the central U.S. cash safety net program for families with children. Importantly, along with other changes, the reform imposed
The Economic Benefits of Investing in Clean Energy: How the Economic Stimulus Program and New Legislation Can Boost U.S. Economic Growth and Employment
This study, commissioned by the Center for American Progress, examines broader economic considerations—jobs, incomes, and economic growth—through the lens of two government initiatives this year by
Aggregate Real Wages: Macro Fluctuations and Micro Drivers
Using data from the Current Population Survey from 1980 through 2010 we examine what drives variation and cyclicality in the growth rate of real wages over time. We employ a novel decomposition
The Disparate Labor Market Impacts of Monetary Policy.
Employing two widely used approaches to identify the effects of monetary policy, this paper explores the differential impact of policy on the labor market outcomes of teenagers, minorities,
Dissecting Aggregate Real Wage Fluctuations: Individual Wage Growth and the Composition Effect
Using data from the Current Population Survey from 1980 through 2011 we examine what drives the variation and cyclicality of the growth rate of real wages over time. We employ a novel decomposition


The Rising Tide Lifts...?
To what extent did the economic boom of the 1990s-early 2000s improve the well-being of persons in the bottom rungs of the income distribution? This paper uses a pooled cross-state time series
Macroeconomic Performance and the Disadvantaged
A LONG-STANDING, positive relationship between the economic wellbeing of the poor and the growth of the economy has changed. In the 1960s rapid economic growth and a relatively stable macroeconomy
Why Were Poverty Rates so High in the 1980s?
This paper explores the relationship between the macroeconomy and the poverty rate. The first section provides evidence that poverty was far less responsive to macroeconomic growth in the 1980s than
Poverty, Income Distribution, and Growth: Are They Still Connected?
MACROECONOMIC GROWTH has long been viewed as one of the most effective ways to reduce poverty. Historically, the rising tide of labor market opportunities that accompanies an economic expansion has
U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations
The article studies the U.S. earning trends since 1950 and gives explanations for the inequality in earnings. Both slow growth and increased inequality appear in the comparison of adult male earnings
Why are Wages Cyclical in the 1970&Apos;S?
This paper investigates cyclicality in real wages between 1969 and 1982, using 14 years of data from the Panel Survey of Income Dynamics. First, it investigates the extent to which movements in and
Measuring the Cyclicality of Real Wages: How Important is Composition Bias
In the period since the 1960's, as in other periods, aggregate time series on real wages have displayed only modest cyclicality. Macroeconomists therefore have described weak cyclicality of real
Accounting for the Decline in AFDC Caseloads : Welfare Reform or Economic Growth ?
Nationwide, AFDC caseloads have decreased by about 18 percent since March 1994, while some states, such as Wisconsin, Indiana, and Oregon, have seen declines of 40 percent or more. Two factors are
Real Wages over the Business Cycle: Evidence from Panel Data
  • M. Bils
  • Economics
    Journal of Political Economy
  • 1985
One topic on which Keynes did not disagree with classical economists was the cyclical behavior of real wages. Keynes (1936) as well as various classical writers predicted that real wages should move
Macroeconomics, Income Distribution, and Poverty
This paper investigates the impacts of macroeconomic activity and policy on the poverty population. It is shown that both the poverty count and the income share of the lowest quintile of income