Hesitating at the Altar

2017 ◽  
Vol 46 (5) ◽  
pp. 743-763 ◽  
Author(s):  
Nick Frazier ◽  
Margaret McKeehan
Keyword(s):  
Marital Status ◽  
Panel Study ◽  
Income Dynamics ◽  
Percentage Points ◽  
Marriage Tax ◽  
The Us ◽  
Using Data ◽  
Tax Filing

This article provides evidence that the US tax code’s dependence on marital status continues to generate an implicit marriage tax and distort marital decisions. By looking at the timing of marriage rather than the decision to marry, we capture a specific distortion while allowing for heterogeneity in other costs of marriage. Using data on couples from the Panel Study on Income Dynamics between 1986 and 2011, we find that a 1 percent rise in the size of the marriage tax relative to a couple’s income increases the probability of delay by 1.2 percentage points. We further demonstrate the robustness of this result across a variety of alternative specifications and assumptions regarding tax-filing behavior.

scholarly journals Tenure, Turnover, And Earnings Profiles In Germany And The United States

2011 ◽  
Vol 1 (9) ◽  
Author(s):  
Kenneth A. Couch
Keyword(s):  
United States ◽  
Panel Study ◽  
The United States ◽  
Job Turnover ◽  
Income Dynamics ◽  
Employment Tenure ◽  
Returns To Experience ◽  
Using Data ◽  
The U.S ◽  
Male Workers

Employment tenure, job turnover and returns to general and specific skills are examined for male workers in Germany and the United States using data from the German Socio-Economic Panel and the Panel Study of Income Dynamics.  Employment in Germany is characterized by longer duration and less frequent turnover than in the United States.  Returns to experience and tenure are lower in Germany than in the U.S.; however, peak earnings occur later.  This delayed peak in the employment-earnings profile provides an incentive for German workers to remain longer with their employers and change jobs less frequently.

scholarly journals Marital Matching, Economies of Scale, and Intrahousehold Allocations

2020 ◽  
Vol 102 (4) ◽  
pp. 823-837
Author(s):  
Laurens Cherchye ◽  
Bram De Rock ◽  
Khushboo Surana ◽  
Frederic Vermeulen
Keyword(s):  
Economies Of Scale ◽  
Panel Study ◽  
Scale Economies ◽  
Preference Heterogeneity ◽  
Income Dynamics ◽  
Public And Private ◽  
Preference Information ◽  
The Public ◽  
The Us ◽  
Allocation Patterns

We propose a novel nonparametric method to empirically identify economies of scale in multiperson household consumption. We assume consumption technologies that define the public and private nature of expenditures through Barten scales. Our method (solely) exploits preference information revealed by a cross-section of household observations while accounting for fully unobserved preference heterogeneity. An application to data drawn from the US Panel Study of Income Dynamics shows that the method yields informative results on scale economies and intrahousehold allocation patterns. In addition, it allows us to define individual compensation schemes required to preserve the same consumption level in case of marriage dissolution or spousal death.

scholarly journals The Effects of a Between-Wave Incentive Experiment on Contact Update and Production Outcomes in a Panel Study

2013 ◽  
Vol 29 (2) ◽  
pp. 261-276 ◽  
Author(s):  
Katherine A. McGonagle ◽  
Robert F. Schoeni ◽  
Mick P. Couper
Keyword(s):  
Data Collection ◽  
Overall Response Rate ◽  
Response Rate ◽  
Panel Study ◽  
Response Rates ◽  
Income Dynamics ◽  
Overall Response ◽  
Percentage Points ◽  
Contact Information ◽  
The U.S

Abstract Since 1969, families participating in the U.S. Panel Study of Income Dynamics (PSID) have been sent a mailing asking them to update or verify their contact information in order to keep track of their whereabouts between waves. Having updated contact information prior to data collection is associated with fewer call attempts, less tracking, and lower attrition. Based on these advantages, two experiments were designed to increase response rates to the between wave contact mailing. The first experiment implemented a new protocol that increased the overall response rate by 7-10 percentage points compared to the protocol in place for decades on the PSID. This article provides results from the second experiment which examines the basic utility of the between-wave mailing, investigates how incentives affect article cooperation to the update request and field effort, and attempts to identify an optimal incentive amount. Recommendations for the use of contact update strategies in panel studies are made.

scholarly journals The Intergenerational Correlation of Consumption Expenditures

2014 ◽  
Vol 104 (5) ◽  
pp. 136-140 ◽  
Author(s):  
Kerwin Kofi Charles ◽  
Sheldon Danziger ◽  
Geng Li ◽  
Robert Schoeni
Keyword(s):  
Risk Sharing ◽  
Panel Study ◽  
Correlation Coefficients ◽  
Consumption Smoothing ◽  
Income Dynamics ◽  
Family Risk ◽  
Access To Credit ◽  
Consumption Expenditures ◽  
Intergenerational Correlation ◽  
Using Data

Using data recently collected by the Panel Study of Income Dynamics, we find that the intergenerational correlation in expenditures is no larger than that in income, suggesting limited intra-family risk-sharing. On the other hand, even after controlling for the intergenerational correlation in income, the expenditures correlation remains significant. This suggests that other factors such as preferences, access to credit, and non-pecuniary inter vivos transfers potentially played a role in consumption smoothing across generations within a family. We also find that the correlation coefficients estimated using food and imputed total expenditures are smaller than that estimated using the measured total expenditures.

scholarly journals The Effect of EITC Exposure in Childhood on Marriage and Early Childbearing

Demography ◽  
2021 ◽  
Author(s):  
Katherine Michelmore ◽  
Leonard M. Lopoo
Keyword(s):  
Income Tax ◽  
White Women ◽  
Panel Study ◽  
Early Adulthood ◽  
Well Being ◽  
Growing Up ◽  
Income Dynamics ◽  
Earned Income ◽  
Black And White ◽  
Using Data

Abstract Using data from the Panel Study of Income Dynamics, this study analyzes the effect of exposure to the Earned Income Tax Credit (EITC) in childhood on marriage and childbearing in early adulthood. Results suggest that EITC exposure in childhood leads women to delay marriage and first births in early adulthood (ages 16–25), but has no effect on men. A $1,000 increase in EITC exposure in childhood leads to a 2%–3% decline in a woman's likelihood of having a first birth and a comparable decline in her likelihood of marrying by her early 20s. We find similar reductions in fertility among Black and White women, though marriage declines are concentrated among White women. Results are focused on children growing up in the bottom half of the income distribution and those who spent the majority of childhood residing with a single parent—two groups that are the primary beneficiaries of the EITC. These findings have important implications for the well-being of individuals exposed to the EITC in childhood, as well as their future children.

Exposure to Food Insecurity during Adolescence and Educational Attainment

2020 ◽  
Author(s):  
Colleen Heflin ◽  
Rajeev Darolia ◽  
Sharon Kukla-Acevedo
Keyword(s):  
Educational Attainment ◽  
Food Insecurity ◽  
Transition To Adulthood ◽  
Panel Study ◽  
Behavioral Outcomes ◽  
College Attendance ◽  
Negative Consequences ◽  
Income Dynamics ◽  
Using Data ◽  
Lower Educational Attainment

Abstract Previous research has documented the negative consequences of exposure to food insecurity over the early childhood period in terms of health and cognitive and behavioral outcomes, but less research has explored the consequences of exposure to food insecurity at other points in childhood. We examine the association between food insecurity during adolescence and educational attainment. We begin by exploring a conceptual framework for the potential mechanisms that might lead adolescents who experience food insecurity to have differential educational outcomes. Then, we use descriptive and regression analysis to see whether food insecurity is associated with lower educational attainment using data from the Panel Study of Income Dynamics Transition to Adulthood Survey. We find that exposure to food insecurity during adolescence predicts lower levels of educational attainment by reducing college attendance.

scholarly journals Contract Form, Wage Flexibility, and Employment

2012 ◽  
Vol 102 (3) ◽  
pp. 526-531 ◽  
Author(s):  
Thomas Lemieux ◽  
W. Bentley MacLeod ◽  
Daniel Parent
Keyword(s):  
Employee Performance ◽  
Panel Study ◽  
Strong Support ◽  
Income Dynamics ◽  
Specific Investments ◽  
Bonus Pay ◽  
Wage Contracts ◽  
Fixed Wage ◽  
Using Data ◽  
Contract Form

We begin with two uncontroversial hypotheses - firm productivity is expensive to measure and employment entails relationship-specific investments. These assumptions imply that firms would optimally choose fixed-wage contracts, and complement these with bonus pay when measuring employee performance is not too costly. These assumptions imply that under an optimal employment contract hours of work is less responsive, while total compensation is more responsive to shocks under bonus-pay contracts compared to fixed wage contracts. Using data from the Panel Study of Income Dynamics (PSID) where shocks are proxied using the local unemployment rate, we find strong support for these two implications.

Labor Supply and Household Dynamics

2014 ◽  
Vol 104 (5) ◽  
pp. 354-359 ◽  
Author(s):  
Maurizio Mazzocco ◽  
Claudia Ruiz ◽  
Shintaro Yamaguchi
Keyword(s):  
Labor Supply ◽  
Marital Status ◽  
Panel Study ◽  
Collective Model ◽  
Income Dynamics ◽  
Collective Models ◽  
Household Dynamics ◽  
Household Decisions ◽  
Individual Welfare ◽  
Over Time

Using the Panel Study of Income Dynamics, we provide evidence that to understand household decisions and evaluate policies designed to affect individual welfare, it is important to add an intertemporal dimension to the by-now standard static collective models of the household. Specifically, we document that the observed differences in labor supply by gender and marital status do not arise suddenly at the time of marriage, but rather emerge gradually over time. We then propose an intertemporal collective model that has the potential of explaining the observed patterns.

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