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

  • 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 economicallyWe 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.show moreshow less

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Metadaten
Institutes:Fakultät Sozial- und Wirtschaftswissenschaften / Lehrstuhl für Soziologie, insbesondere Methoden der empirischen Sozialforschung
Author:Jonathan LatnerORCiD
Place of publication:Bamberg
Publisher:OPUS
Year of publication:2019
Pages / Size:1 pdf-Datei (21 S.)
Source/Other editions:Ursprünglich in: Social Science Research : a quarterly journal of social science methodology and quantitative research 77 (2019) S. 193-213
SWD-Keyword:USA ; Einkommensverteilung ; Volatilität
Keywords:Economic insecurity; Income mobility; Income volatility; Inequality; Standard of living
DDC-Classification:3 Sozialwissenschaften / 30 Sozialwissenschaften, Soziologie / 300 Sozialwissenschaften
3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
RVK-Classification:MS 1235
URL:https://opus4.kobv.de/opus4-bamberg/frontdoor/index/index/docId/53901
URN:urn:nbn:de:bvb:473-opus4-536533
DOI:https://doi.org/10.20378/irbo-53653
Document Type:Variety of texts
Language:English
Internationale Verbreitung:Ja
Open-Access-Zeitschrift:Nein
Publishing Institution:Otto-Friedrich-Universität Bamberg
Release Date:2018/12/18