Two Ways of Looking at Data on Income Inequality...
A correspondent reminds me of this from Greg Mankiw, which at the time seemed to me to indicate that Greg was still high on the Bush administration koolaid he had drunk:
Greg Mankiw's Blog: New Data on Income Inequality: Paul Krugman calls attention to the update of the Piketty-Saez data on income inequality, although Paul describes the data differently than I would. Here is what I see: After rising substantially from 1986 to 2000, income inequality is essentially the same in 2004 (the most recent year of data) as it was in 2000.
Greg wrote this last year, before the IRS issued the data underlying the 2005 data point in this:
Market income excluding capital gains