Economic insecurity and the distribution of income volatility in the United States.

Abstract We examine inequalities in the distribution of income volatility in two ways using data from the Panel Study of Income Dynamics (PSID) in order to improve our understanding of economic insecurity. First, we use a variance function regression to jointly quantify the relationship between chan...

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Published in:Social Science Research Vol. 77; pp. 193 - 214
Main Author: Latner, Jonathan P.
Format: Article
Published: Academic Press Inc. Jan2019
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Jan2019
      vid: 77
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      pub: Academic Press Inc.
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        133093953
        10.1016/j.ssresearch.2018.09.005
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        atl: Economic insecurity and the distribution of income volatility in the United States.
      aug:
        au: Latner, Jonathan P.
        affil: Bamberg Universität, Germany
      su:
        Income inequality
        Disposable income
        Discretionary income
        Development gap
        Market volatility
      sug:
        subj:
          Income inequality
          Disposable income
          Discretionary income
          Development gap
          Market volatility
      keyword:
        Economic insecurity
        Income mobility
        Income volatility
        Inequality
        Standard of living
        Economic insecurity
        Income mobility
        Income volatility
        Inequality
        Standard of living
      ab: Abstract We examine inequalities in the distribution of income volatility in two ways using data from the Panel Study of Income Dynamics (PSID) in order to improve our understanding of economic insecurity. First, we use a variance function regression to jointly quantify the relationship between changes in average levels of volatility as they relate to changes in the distribution of volatility. The results indicate that inequalities in the distribution of volatility rise much faster than the overall level of volatility. Therefore, what are often perceived to be rising levels of volatility for everyone are better understood as rising levels of volatility for households at the top of the volatility distribution. Second, we use a linear probability model to better understand changes in who experiences high income volatility over time. Rising inequalities in the distribution of volatility turn out to be the result of a rising probability of experiencing high volatility among households that would not typically be classified as economically insecure.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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