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Published: January 25, 2004
IF there is one thing that most people think they know about incomes in the United States over the last few decades, it is probably that salaries have grown more unequal. The rich have gotten richer faster than everyone else has.
In recent weeks, a new book has challenged this conventional wisdom, calling it a statistical mirage, and its striking claim has begun to receive national attention. Among native-born Americans, lower- and middle-income families have actually received proportionately bigger raises than the wealthy, according to "The Progress Paradox" (Random House), written by Gregg Easterbrook, a Washington journalist. Only a great influx of immigrants - many of them poor, but richer than they were in their home countries - has made inequality appear to widen in the statistics, Mr. Easterbrook says.
"Factor out immigration," he writes, "and the rise in American inequality disappears."
The idea has echoed from the book into the pages of The Washington Post, The Chicago Sun-Times, The San Diego Union-Tribune, The Times of London and BusinessWeek magazine, among other publications. It seems like one of those facts that could rewrite conventional wisdom about the American economy.
It happens, however, not to be true.
The millions of immigrants who have entered the country in recent decades have indeed made inequality look larger than it otherwise would. But even among households headed by native-born Americans, the rich have done far better than others over the past 20 years - as well as over the past 30, 40 or 50 years, according to government statistics and the economists who study them.