This paper yesteryear Bruce Sacerdote is worth noting:
Despite the large increase inward the US income inequality, consumption for families at the 25th in addition to 50th percentiles of income has grown steadily over the fourth dimension menstruum 1960-2015. The break of cars per household amongst below median income has doubled since 1980 in addition to the break of bedrooms per household has grown 10 per centum despite decreases inward household size. The finding of naught growth inward American existent payoff since the 1970s is driven inward role yesteryear the alternative of the CPI-U equally the cost deflator; little biases inward whatsoever cost deflator chemical compound over long periods of time. Using a unlike deflator such equally the Personal Consumption Expenditures index (PCE) yields little growth inward existent payoff in addition to inward median household incomes throughout the fourth dimension period. Accounting for the Hamilton (1998) in addition to Costa (2001) estimates of CPI bias yields estimated wage growth of one per centum per yr during 1975-2015. Meaningful growth inward consumption for below median income families has occurred fifty-fifty inward a prolonged menstruum of increasing income inequality, increasing consumption inequality in addition to a decreasing part of national income accruing to labor.Sumber https://gregmankiw.blogspot.com/
