The Evolution of Income Inequality, Its Consequences, and Some Policy Measures

This article discusses the key concepts and main stylized facts concerning household real income and income inequality in the United States in recent decades. It explains the widely used summary measures of income distribution, which reveal that income inequality in the United States has been steadily rising. It explores the economic implications and social consequences of the evolution of household real income and income inequality, and considers ongoing debates about policy measures to mitigate the adverse effects of elevated income inequality, such as basic income support and job guarantees.