Which of the following contributed to the increase in income inequality among families in the United States during the 1980s and 1990s?
A) an increase in the highest marginal tax rates that forced high income earners to work more in order to maintain their income
B) an increase in the proportion of both single-parent and dual-earner families
C) a decrease in the size of the earnings differential between college graduates and high school graduates
D) all of the above

Question

Quizplus · Accepted Answer

During the 1980s and 1990s, there was an increase in the proportion of both single-parent and dual-earner families, which contributed to the increase in income inequality. Option A is incorrect as there was actually a decrease in the highest marginal tax rates during this period. Option C is also incorrect as there was actually an increase in the earnings differential between college graduates and high school graduates during this time.

Which of the Following Contributed to the Increase in Income