Inequality

Trouble in the tails? What we know about earnings nonresponse 30 years after Lillard, Smith, and Welch

Earnings nonresponse in household surveys is widespread, yet there is limited evidence on whether and how nonresponse bias affects measured earnings. This paper examines the patterns and consequences of nonresponse using internal Current Population Survey individual records linked to administrative Social Security Administrative data on earnings for calendar years 2005-2010. Our findings confirm the conjecture by Lillard, Smith, and Welch (1986) that nonresponse across the earnings distribution is U-shaped. Left-tail “strugglers” and right-tail “stars” are least likely to report earnings.

Is earnings non-response ignorable?

Earnings nonresponse in the Current Population Survey is roughly 30% in the monthly surveys and 20% in the March survey. If nonresponse is ignorable, unbiased estimates can be achieved by omitting nonrespondents. Little is known about whether CPS nonresponse is ignorable. Using sample frame measures to identify selection, we find clear-cut evidence among men but limited evidence among women for negative selection into response.

Decomposing trends in income volatility: The 'wild ride' at the top and bottom

We provide a detailed accounting of the trend increase in family income volatility in recent decades by quantifying the contributions of household head earnings, spouse earnings, non-transfer non-labor income, transfer income, and tax payments (inclusive of the refundable Earned Income Tax Credit), along with covariances among the income components. Using twoyear matched panels in the Current Population Survey from 1980 to 2009, we find that the volatility of family income, as measured by the variance of the arc percent change, doubled over the past three decades.

Childhood Income Volatility and Adult Outcomes

Using data linked across generations in the Panel Study of Income Dynamics, I estimate the relationship between exposure to volatile income during childhood and a set of socioeconomic outcomes in adulthood. The empirical framework is an augmented intergenerational income mobility model that includes controls for income volatility. I measure income volatility at the family level in two ways. First, instability as measured by squared deviations around a family-specific mean, and then as percent changes of 25 percent or more.

Earnings volatility in America: Evidence from matched CPS

We offer new evidence on earnings volatility of men and women in the United States over the past four decades by using matched data from the March Current Population Survey. We construct a measure of total volatility that encompasses both permanent and transitory instability, and that admits employment transitions and losses from self employment. We also present a detailed decomposition of earnings volatility to account for changing shares in employment probabilities, conditional variances of continuous workers, and conditional mean variances from labor-force entry and exit.

If you don't build it: Mexican mobility following the U.S. housing bust

This paper demonstrates the importance of earnings-sensitive migration in response to local variation in labor demand. We use geographic variation in the depth of the housing bust to examine its effects on the migration of natives and Mexican-born individuals in the U.S. We find a strong effect of the housing bust on the location choices of Mexicans, with movement of Mexican population away from U.S. states facing the largest declines in construction and movement toward U.S. states facing smaller declines.

An exploratory analysis of the relationship between student earnings and postsecondary retention

Policy makers are becoming increasingly concerned about the high percentage of students who attend postsecondary education without completing a degree. Researchers have studied numerous potential determinants of retention behavior for postsecondary students, such as financial aid, socioeconomic status, academic preparedness, academic and social integration, and expected future wages. However, none of these studies considers students’ earnings while in school as a potential determinant of retention.

State unemployment protection statutes for victims of domestic violence as an employment matter

Evidence indicates that domestic violence has negative consequences on victims’ employment; yet employers lag in recognizing this as a workplace issue. To address the problem, some states have established several policy solutions. To understand the scope of the public sector’s response to domestic violence as a workplace issue, a content analysis of state-level employment protection policies for domestic violence victims (N=369) was conducted.

Imprisonment and (inequality in) population health

This article extends research on the consequences of mass imprisonment and the factors shaping population health and health inequities by considering the effects of the imprisonment rate on population health and black-white inequality in population health using state-level panel data from the United States (1980-2004). My results imply that increases in the imprisonment rate harm population health, though the effects on the infant mortality rate and female life expectancy are more consistent than are the effects on male life expectancy.