A "Second Opinion" on the Economic Health of the American Middle ClassRichard V. Burkhauser, Jeff Larrimore, Kosali I. Simon
NBER Working Paper No. 17164 Researchers considering levels and trends in the resources available to the middle class traditionally measure the pre-tax cash income of either tax units or households. In this paper, we demonstrate that this choice carries significant implications for assessing income trends. Focusing on tax units rather than households greatly reduces measured growth in middle class income. Furthermore, excluding the effect of taxes and the value of in-kind benefits further reduces observed improvements in the resources of the middle class. Finally, we show how these distinctions change the observed distribution of benefits from the tax exclusion of employer provided health insurance. The NBER Bulletin on Aging and Health provides summaries of publications like this.
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Machine-readable bibliographic record - MARC, RIS, BibTeX Document Object Identifier (DOI): 10.3386/w17164 Published: Richard V. Burkhauser & Jeff Larrimore & Kosali I. Simon, 2012. "A "Second Opinion" on the Economic Health of the American Middle Class," National Tax Journal, vol 65(1), pages 7-32. citation courtesy of Users who downloaded this paper also downloaded* these:
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