1998 is the first year that real median household income surpassed its 1989 pre-recessionary peak. Household income inequality remained unchanged. Analysis of the aggregate shares of income also indicates that household income inequality was unchanged between 1997 and 1998. This comparison also shows that median household income declined for Alaska. This change is not statistically different from the 3.5 percent increase for the official measure.
Government transfers have a much greater effect than taxes on redistributing income.