chapter  4
Trends in Earnings and Earnings Inequality
Pages 28

Growing income inequality in the United States over the past quarter century is linked closely to growing dispersion in workers' earnings brought about by changes taking place in the labor market. This should not come as a big surprise given the way the majority of households in this country generate income, that is, by working. But interestingly, it was not the rise in income inequality that prompted economists to initially look to the earnings distribution. It was the other way around.