Tuesday, July 01, 2008
Tweet[IWS] CBO: INDIVIDUAL EARNINGS & HOUSEHOLD INCOME VARIABILITY: RECENT TRENDS [30 June 2008]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Budget Office (CBO)
A CBO Paper
Recent Trends in the Variability of Individual Earnings and Household Income [30 June 2008]
http://www.cbo.gov/doc.cfm?index=9507
or
http://www.cbo.gov/ftpdocs/95xx/doc9507/06-30-Variability.pdf
[full-text, 32 pages]
[excerpt]
Summary and Introduction
Changes in earnings and income are characteristic of a dynamic labor market, as people change jobs or careers, move between part-time and full-time work, or start or stop working. Having that flexibility in the labor market is generally considered a source of strength of the U.S. economy. Nonetheless, for some people that variability causes true economic hardship.
The extent to which the earnings of workers and income of households vary from year to year can have important consequences for how people spend and save their money. The Congressional Budget Office (CBO) has analyzed that variation over the past two decades, both for individuals and for households, using data from the Social Security Administration (SSA) and the Census Bureau. That analysis indicates that a substantial fraction of workers experience large changes in their earnings from one year to the next and that a smaller percentage of households see large year-to-year changes in their income. The variability in individual earnings and household income has changed little since the mid-1980s.
AND MUCH MORE....
Contents
Summary and Introduction 1
Individual Earnings 1
Household Income 2
Variability in Individual Earnings 2
Data and Methods 2
Variability in Individual Earnings Over Time 3
Variability in Individual Earnings, by Sex, Age, and Earnings Quintile 5
Limitations of the Analysis 8
Variability in Household Income 8
Data and Methods 10
Variability in Household Income Over Time 11
Variability in Household Income, by Age, Education,
Household Structure, and Income Quintile 14
Limitations of the Analysis 15
Appendix: Data, Methods, and Alternative Measures of Variability 17
Tables
1. Distribution of Changes in Workers' Annual Real Earnings from 2002 to 2003, by Sex, Age, and Earnings Quintile 6
A-1. Characteristics of Households in the Matched Sample 22
Figures
1. Distribution of Changes in Workers' Annual Real Earnings from 2002 to 2003 3
2. Percentage of Workers Whose Earnings Increased or Decreased by 25 Percent or More from the Previous Year, by Sex 4
3. Percentage of Workers Whose Earnings Changed by 25 Percent or More from the Previous Year, by Age and Earnings Quintile 7
4. Distribution of Changes in Households' Annual Real Income from 2004 to 2005 9
5. Percentage of Households Whose Income Changed by 25 Percent or More from the Previous Year 10
6. Percentage of Households Whose Income Changed by 25 Percent or More from the Previous Year, by Age and Education of Head, Household Structure, and Income Quintile 12
A-1. Standard Deviation of the Percentage Change in Workers' Earnings, Self-Employment Income, and Combined Earnings and Self-Employment Income 19
A-2. Standard Deviation of the Percentage Change in Workers' Earnings, by Sex 20
A-3. Standard Deviation of the Difference in the Logarithm of Workers' Earnings, by Sex 21
A-4. Percentage of Households Whose Income Changed by 25 Percent or More from the Previous Year, by Source of Data 24
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Congressional Budget Office (CBO)
A CBO Paper
Recent Trends in the Variability of Individual Earnings and Household Income [30 June 2008]
http://www.cbo.gov/doc.cfm?index=9507
or
http://www.cbo.gov/ftpdocs/95xx/doc9507/06-30-Variability.pdf
[full-text, 32 pages]
[excerpt]
Summary and Introduction
Changes in earnings and income are characteristic of a dynamic labor market, as people change jobs or careers, move between part-time and full-time work, or start or stop working. Having that flexibility in the labor market is generally considered a source of strength of the U.S. economy. Nonetheless, for some people that variability causes true economic hardship.
The extent to which the earnings of workers and income of households vary from year to year can have important consequences for how people spend and save their money. The Congressional Budget Office (CBO) has analyzed that variation over the past two decades, both for individuals and for households, using data from the Social Security Administration (SSA) and the Census Bureau. That analysis indicates that a substantial fraction of workers experience large changes in their earnings from one year to the next and that a smaller percentage of households see large year-to-year changes in their income. The variability in individual earnings and household income has changed little since the mid-1980s.
AND MUCH MORE....
Contents
Summary and Introduction 1
Individual Earnings 1
Household Income 2
Variability in Individual Earnings 2
Data and Methods 2
Variability in Individual Earnings Over Time 3
Variability in Individual Earnings, by Sex, Age, and Earnings Quintile 5
Limitations of the Analysis 8
Variability in Household Income 8
Data and Methods 10
Variability in Household Income Over Time 11
Variability in Household Income, by Age, Education,
Household Structure, and Income Quintile 14
Limitations of the Analysis 15
Appendix: Data, Methods, and Alternative Measures of Variability 17
Tables
1. Distribution of Changes in Workers' Annual Real Earnings from 2002 to 2003, by Sex, Age, and Earnings Quintile 6
A-1. Characteristics of Households in the Matched Sample 22
Figures
1. Distribution of Changes in Workers' Annual Real Earnings from 2002 to 2003 3
2. Percentage of Workers Whose Earnings Increased or Decreased by 25 Percent or More from the Previous Year, by Sex 4
3. Percentage of Workers Whose Earnings Changed by 25 Percent or More from the Previous Year, by Age and Earnings Quintile 7
4. Distribution of Changes in Households' Annual Real Income from 2004 to 2005 9
5. Percentage of Households Whose Income Changed by 25 Percent or More from the Previous Year 10
6. Percentage of Households Whose Income Changed by 25 Percent or More from the Previous Year, by Age and Education of Head, Household Structure, and Income Quintile 12
A-1. Standard Deviation of the Percentage Change in Workers' Earnings, Self-Employment Income, and Combined Earnings and Self-Employment Income 19
A-2. Standard Deviation of the Percentage Change in Workers' Earnings, by Sex 20
A-3. Standard Deviation of the Difference in the Logarithm of Workers' Earnings, by Sex 21
A-4. Percentage of Households Whose Income Changed by 25 Percent or More from the Previous Year, by Source of Data 24
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 11:17 AM
