Although most U.S. income inequality research is based on public use March CPS data, a new wave of research using IRS tax return data reports substantially faster inequality growth for recent years. We show that these apparently inconsistent estimates are largely reconciled when the income...

The authors examine the effect of the Medicaid program on the labor supply and welfare participation decisions of female heads of family. A key contribution is the development of a family-specific proxy for the valuation of Medicaid benefits. The authors find that Medicaid has strong and...

The authors modify the basic self-sele ction model for the effects ofeducation, training, unions, and other activities on wages, by including "heterogeneity of rewards" to the activity-i.e., diffe rences across individuals in the rate of return to the activity. The authors sho w that such...