Working Paper No. 1109
March 30, 2026
The Evolution of Income Inequality in the United States, Its Consequences, and Some Policy Measures
This paper 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 US 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 universal basic income and job guarantees.