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The endogenous income distribution is found to exhibit bimodality, with the lower-income group attending public schools and the upper-income group attending private schools.
The lower-income group was the referent category for both models.
However, overall, higher-income groups grew faster than lower-income groups during the entire period, in particular with respect to occupation.
When higher-income groups grow faster than lower-income groups, income levels across income-status groups diverge and income inequality tends to increase.
I recognise that for many lower-income families the fear of debt is a real worry and could act as a bar to higher education.
Third it has substantially increased the generosity of means-tested benefits to which the poorest, and lower-income, pensioners are entitled.
Industry in lower-income areas displays a higher concentration of the dirtiest industrial sectors and of smaller plants (which are dirtier).
Recall that debt aversion was only an issue for those from lower-income families.
Overall then, debt aversion was a factor for those from the lower-income group, but not for those from the middle class.
Thus, lower-income respondents tend to use a greater number of strategies rather than a number of more drastic ones.
In the third step, the neighbourhood characteristics were entered : degree of urbanisation, percentage of age peers, percentage of lower-income households, and residential mobility.
Keeping costs down and reducing disincentives by making means-testing less generous would make many lower-income pensioners worse off than under current plans.
We have also shown that those in the lower-income group were more debt averse than those in the middle and upper classes.
When a higher-income group grows faster than a lower-income group, the income gap between the two diverges and the across-group inequality increases (or vice versa).
As more people join higher-income groups transiting from the lower-income groups, the average income in the economy grows.
