Explaining widely varying income trends for ordinary households

In a new LIS working paper publication, written together with Brian Nolan, Lane Kenworthy, Max Roser, and Tim Smeeding, we show that there are striking differences across OECD countries in how “ordinary” households have fared from around 1980 through the Great Recession. Economic growth and inequality together leave much of the variation in the income position of these households unaccounted for, so direct measures of how these incomes in the middle of the distribution are evolving need to be central to monitoring progress towards inclusive growth.