**Table 3.** Income growth and inequality by percentiles in the U.S.: estimated results using robust System-GMM (baseline specification).

||**All sa**|**mple**|**Percen**|**tile 05**|**Perce**|**ntile 10**|**Perce**|**ntile 25**|**Perce**|**ntile 50**|**Perce**|**ntile 75**|**Perce**|**ntile 90**|**Perce**|**ntile 95**|**Perce**|**ntile 99**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Ineq., lag**|-0.0471*|0.0275|-0.0512|0.239***|-0.126**|0.0947*|-0.0800**|0.0264|-0.0380*|0.0142|0.00587|0.0195|0.0240|-0.0159|0.0415**|-0.0314|0.0628***|-0.000172|
||(-1.79)|(0.93)|(-0.65)|(2.84)|(-2.06)|(1.85)|(-2.17)|(0.77)|(-1.86)|(0.46)|(0.35)|(0.71)|(1.50)|(-0.52)|(2.37)|(-0.89)|(2.83)|(-0.00)|
|**IO, lag**||-0.170**||-0.783***||-0.601***||-0.263***||-0.110||-0.0130||0.118||0.195**||0.166|
|||(-2.25)||(-3.20)||(-3.45)||(-2.78)||(-1.41)||(-0.20)||(1.59)||(2.36)||(1.53)|
|**ln(y), lag**|-0.0634***|-0.0618***|-0.0472***|-0.0491***|-0.0634***|-0.0659***|-0.0614***|-0.0620***|-0.0684***|-0.0663***|-0.0585***|-0.0563***|-0.0498***|-0.0498***|-0.0402***|-0.0414***|-0.0357***|-0.0372***|
||(-6.37)|(-6.20)|(-4.18)|(-3.81)|(-5.93)|(-5.44)|(-5.65)|(-5.42)|(-6.05)|(-5.89)|(-6.77)|(-6.53)|(-7.16)|(-7.39)|(-6.08)|(-6.64)|(-3.71)|(-3.95)|
|**Edu_ms, lag**|0.114***|0.112***|0.0545|0.0511|0.103***|0.102**|0.0949***|0.0961***|0.124***|0.122***|0.106***|0.107***|0.0946***|0.103***|0.0832***|0.0957***|0.0673**|0.0797**|
||(4.09)|(4.06)|(1.24)|(1.03)|(2.75)|(2.60)|(3.07)|(2.95)|(4.15)|(4.16)|(4.57)|(4.72)|(4.71)|(5.15)|(4.00)|(4.69)|(2.23)|(2.39)|
|**Olf-female, lag**|-0.0425***|-0.0633***|-0.0744**|-0.162***|-0.0656**|-0.132***|-0.0657***|-0.0959***|-0.0505***|-0.0642***|-0.0354***|-0.0374***|-0.0265**|-0.0123|-0.0278*|-0.00163|-0.0315|-0.00614|
||(-3.13)|(-4.76)|(-2.30)|(-4.52)|(-2.39)|(-5.49)|(-3.64)|(-5.28)|(-3.72)|(-4.34)|(-2.85)|(-3.01)|(-2.01)|(-0.89)|(-1.85)|(-0.11)|(-1.65)|(-0.29)|
|**Aged 0-15, lag**|-0.250***|-0.225***|-0.150|-0.157|-0.209*|-0.213*|-0.217**|-0.213**|-0.270***|-0.246***|-0.258***|-0.226***|-0.245***|-0.218***|-0.235***|-0.207***|-0.210***|-0.194***|
||(-3.07)|(-3.02)|(-1.09)|(-1.20)|(-1.70)|(-1.80)|(-2.27)|(-2.27)|(-3.41)|(-3.29)|(-4.06)|(-4.04)|(-4.34)|(-4.72)|(-3.81)|(-4.29)|(-3.07)|(-3.40)|
|**Age 65+, lag**|-0.0969*|-0.119**|-0.147|-0.250*|-0.102|-0.186*|-0.0404|-0.0794|-0.0857|-0.0995*|-0.104**|-0.112**|-0.106**|-0.105**|-0.0761|-0.0692|-0.0381|-0.0372|
||(-1.69)|(-2.02)|(-1.47)|(-1.97)|(-1.14)|(-1.77)|(-0.64)|(-1.22)|(-1.54)|(-1.82)|(-2.08)|(-2.38)|(-2.15)|(-2.35)|(-1.56)|(-1.55)|(-0.69)|(-0.66)|
|**Num.Obs.**|240|240|240|240|240|240|240|240|240|240|240|240|240|240|240|240|240|240|
|**hansen (p-val)**|0.343|0.765|0.283|0.586|0.418|0.798|0.423|0.757|0.368|0.676|0.308|0.682|0.474|0.708|0.303|0.614|0.542|0.857|
|**m1(p-val)**|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|**m2(p-val)**|0.00630|0.0119|0.00687|0.00890|0.00288|0.00607|0.0154|0.0372|0.00609|0.0102|0.0109|0.0146|0.00454|0.00653|0.180|0.165|0.0882|0.0884|
|**AR(3)(p-val)**|0.111|0.142|0.124|0.243|0.195|0.442|0.0457|0.0959|0.119|0.149|0.256|0.260|0.544|0.651|0.341|0.437|0.990|0.761|
|**Num.States**|48|48|48|48|48|48|48|48|48|48|48|48|48|48|48|48|48|48|
|**Num.Instr.**|53|61|53|61|53|61|53|61|53|61|53|61|53|61|53|61|53|61|

Note. See Note in Table 2. A constant term and time dummies are included in all models (estimations not shown in the table). Estimations are by one-step System-GMM, reducing the number of lags to just 2. Tests _m_ 1 and _m_ 2 are for first- and second-order serial correlation in the first-differenced residuals. Both are asymptotically N(0,1) distributed under the null of no serial correlation. Since most _p_ -values of the _m_ 2 test are below 0.10, _t_ -2 instruments are invalid. Thus, for the first difference equations, we use instruments starting at _t_ -3. The test for the existence of an AR(3) in the first-difference residuals is shown to check for the validity of these instruments. The Hansen over-identifying restrictions test is asymptotically distributed as a chi-square with degrees of freedom equal to the number of instruments minus the number of parameters to be estimated. The _p_ -value reported is for the null hypothesis of instruments validity. A _p_ -value above 0.10 is symptom of instruments validity.

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