The Effects of Earnings Inequality on State Social Spending in the United States

2008 ◽  
Vol 36 (5) ◽  
pp. 588-613 ◽  
Author(s):  
Jonathan A. Schwabish
Author(s):  
Randall Akee

This article examines the earnings and employment experience of American Indians and Alaska Natives (AIAN) and Native Hawaiians and Pacific Islanders (NHPI) residing in the United States during and after the Great Recession. I compare these populations to non-Hispanic whites over the same time period with respect to median earnings and inequality, labor force participation rates, earnings by location, educational attainment, and occupational status. I find that the AIAN population has the lowest median earnings and highest level of earnings inequality. NHPI and AIAN experience a sharp increase in earnings inequality over the Great Recession and AIAN have a pronounced drop in labor force participation; these inequality measures remained elevated and stable over the recovery period especially for the AIAN population. Indigenous peoples employed in food services occupations experienced the least amount of earnings decline over the Great Recession, while those employed in construction and sales experienced larger declines. Labor force participation rates dropped most dramatically for the AIAN population over the Great Recession and remained at a new lower level in the recovery period. The analysis shows that there are stark differences across time, space, and occupation for these groups.


Author(s):  
Sean Higgins ◽  
Nora Lustig ◽  
Whitney Ruble ◽  
Timothy M. Smeeding

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