scholarly journals The Evolution of Household Income Volatility

2012 ◽  
Vol 12 (2) ◽  
Author(s):  
Karen Dynan ◽  
Douglas Elmendorf ◽  
Daniel Sichel
Keyword(s):  
Great Recession ◽  
Economic Activity ◽  
Household Income ◽  
Longitudinal Survey ◽  
Income Volatility ◽  
Transfer Payments ◽  
The Great Recession ◽  
Labor Earnings ◽  
Run Up ◽  
Over Time

Abstract Using a representative longitudinal survey of U.S. households, we find that household income became noticeably more volatile between the early 1970s and the late 2000s despite the moderation seen in aggregate economic activity during this period. We estimate that the standard deviation of percent changes in household income rose about 30 percent between 1971 and 2008. This widening in the distribution of percent changes was concentrated in the tails. The share of households experiencing a 50 percent plunge in income over a two-year period climbed from about 7 percent in the early 1970s to more than 12 percent in the early 2000s before retreating to 10 percent in the run-up to the Great Recession. Households’ labor earnings and transfer payments have both become more volatile over time. As best we can tell, the rise in the volatility of men’s earnings appears to owe both to greater volatility in earnings per hour and in hours worked.

scholarly journals Income Volatility and the PSID: Past Research and New Results

2018 ◽  
Vol 108 ◽  
pp. 277-280 ◽  
Author(s):  
Robert Moffitt ◽  
Sisi Zhang
Keyword(s):  
Great Recession ◽  
Household Income ◽  
Past Research ◽  
Consistent Pattern ◽  
Income Volatility ◽  
Earnings Volatility ◽  
The Great Recession ◽  
Volatility Model ◽  
Large Jump

The PSID has major advantages for studying income volatility and, because of this, research using it has been responsible for major improvements in the methodology of studying income volatility. Its research on calendar trends finds a reasonably consistent pattern for phased but rising male earnings volatility since 1970. Female earnings volatility has declined and household income volatility has risen. Some other datasets find similar patterns but others do not, suggesting the need for more research. A new earnings volatility model is estimated on PSID men through 2014, showing similar patterns but with a large jump during the Great Recession.

scholarly journals Quality of Life, Health and the Great Recession in Spain: Why Older People Matter?

2021 ◽  
Vol 18 (4) ◽  
pp. 2028
Author(s):  
Carla Blázquez-Fernández ◽  
David Cantarero-Prieto ◽  
Marta Pascual-Sáez
Keyword(s):  
Quality Of Life ◽  
Older People ◽  
Great Recession ◽  
Household Income ◽  
Macroeconomic Variables ◽  
Crisis Period ◽  
The Great Recession ◽  
Health Aging ◽  
Logistic Regressions

The financial crisis of 2008 precipitated the “Great Recession”. In this scenario, we took Spain as a country of study, because although it experienced significant negative shocks associated with macroeconomic variables (GDP or unemployment), its welfare indicators have been marked by limited changes. This study used data from waves 2 and 4 (years 2006–2007 and 2010–2012, respectively) of the Survey on Health, Aging and Retirement in Europe (SHARE). Specifically, through logistic regressions we have analysed the effects of socioeconomic, demographic, health and “Great Recession” factors on the quality of life (QoL) of elders in Spain. Although QoL did not change too much during the “Great Recession”, the results confirmed the importance of several factors (such as chronicity) that affect the satisfaction with the QoL among the older people. In this regard, statistically significant effects were obtained for individual exposure to recession. Therefore, a decrease in household income in the crisis period with respect to the pre-crisis period would increase by 44% the probability of reporting a low QoL (OR = 1.44; 95% CI: 1.00–2.07). Furthermore, gender differences were observed. Health and socioeconomic variables are the most significant when determining individual QoL. Therefore, when creating policies, establishing multidisciplinary collaborations is essential.

scholarly journals Family-related Disparities in College Enrollment across the Great Recession

2018 ◽  
Vol 61 (5) ◽  
pp. 689-710 ◽  
Author(s):  
Elizabeth Cozzolino ◽  
Chelsea Smith ◽  
Robert L. Crosnoe
Keyword(s):  
Great Recession ◽  
College Enrollment ◽  
General Trend ◽  
Longitudinal Survey ◽  
Economic Conditions ◽  
Family Stability ◽  
The Great Recession ◽  
Economic Volatility ◽  
Early Family ◽  
Insight Into

The economic crisis of the Great Recession in the late 2000s had implications for the intergenerational transmission of inequality within families. Studying patterns of college enrollment across the Great Recession among U.S. youth from diverse family contexts provides insight into how economic volatility can either compound or undercut the advantages that some parents can give their children. Although college enrollment among 18- to 21-year-olds did not decline during or after the Great Recession, analyses of the National Longitudinal Survey of Youth 1979–Young Adult cohort revealed that this general trend subsumed variability by family history, local economic conditions, and age. Histories of family stability and sufficiency were associated with higher odds of college enrollment over time and across age, but this advantage was largest during the Recession in high-unemployment communities. These results illuminate how life course consequences of early family life can fluctuate with volatility and opportunity in the broader economy.

scholarly journals Income-related inequalities in unmet dental care needs in Spain: traces left by the Great Recession

2020 ◽  
Vol 19 (1) ◽  
Author(s):  
Rosa M. Urbanos-Garrido
Keyword(s):  
Low Income ◽  
Dental Care ◽  
Great Recession ◽  
Unmet Need ◽  
Vulnerable Groups ◽  
Care Needs ◽  
Decomposition Approach ◽  
The Great Recession ◽  
Dental Care Needs ◽  
Over Time

Abstract Background Dental health is an important component of general health. Socioeconomic inequalities in unmet dental care needs have been identified in the literature, but some knowledge gaps persist. This paper tries to identify the determinants of income-related inequality in unmet need for dental care and the reasons for its recent evolution in Spain, and it inquires about the traces left by the Great Recession. Methods Data from the EU-SILC forming a decade (2007–2017) were used. Income-related inequalities for three years were measured by calculating corrected concentration indices (CCI), which were further decomposed in order to compute the contribution of different factors to inequality. An Oaxaca-type decomposition approach was also used to analyze the origin of changes over time. Men and women were analyzed separately. Results Pro-rich inequality in unmet dental care needs significantly increased over time (CCI 2007: − 0.0272 and − 0.0334 for males and females, respectively; CCI 2017: − 0.0704 and − 0.0776; p < 0.001). Inequality showed a clear “pro-cycle” pattern, growing during the Great Recession and starting to decrease just after the economic recovery began. Gender differences only were significant for 2009 (p = 0.004) and 2014 (p = 0.063). Income was the main determinant of inequality and of its variation along time -particularly for women-, followed by far by unemployment –particularly for men-; the contributions of both were mainly due to changes in elasticites. Conclusions The Great Recession left its trace in form of a higher inequality in the access to dental care. Also, unmet need for dental care, as well as its inequality, became more sensitive to the ability to pay and to unemployment along recent years. To broaden public coverage of dental care for vulnerable groups, such as low-income/unemployed people with high oral health needs, would help to prevent further growth of inequality.

scholarly journals Understanding the Great Recession

2015 ◽  
Vol 7 (1) ◽  
pp. 110-167 ◽  
Author(s):  
Lawrence J. Christiano ◽  
Martin S. Eichenbaum ◽  
Mathias Trabandt
Keyword(s):  
Great Recession ◽  
Economic Activity ◽  
New Keynesian ◽  
Factor Productivity ◽  
Working Capital ◽  
The Great Recession ◽  
Keynesian Model ◽  
Price Rigidities ◽  
The Cost ◽  
Joint Behavior

We argue that the vast bulk of movements in aggregate real economic activity during the Great Recession were due to financial frictions. We reach this conclusion by looking through the lens of an estimated New Keynesian model in which firms face moderate degrees of price rigidities, no nominal rigidities in wages, and a binding zero lower bound constraint on the nominal interest rate. Our model does a good job of accounting for the joint behavior of labor and goods markets, as well as inflation, during the Great Recession. According to the model the observed fall in total factor productivity and the rise in the cost of working capital played critical roles in accounting for the small drop in inflation that occurred during the Great Recession. (JEL E12, E23, E24, E31, E32, E52)

scholarly journals The PSID and Income Volatility: Its Record of Seminal Research and Some New Findings

2018 ◽  
Vol 680 (1) ◽  
pp. 48-81 ◽  
Author(s):  
Robert Moffitt ◽  
Sisi Zhang
Keyword(s):  
Great Recession ◽  
Panel Study ◽  
The United States ◽  
Income Dynamics ◽  
Income Volatility ◽  
The Great Recession ◽  
Stable Period ◽  
Transitory Shocks ◽  
New Findings ◽  
Three Phase

The Panel Study of Income Dynamics (PSID) has made more contributions to the study of income volatility than any other dataset in the United States. Its record of providing data for seminal research is unmatched. In this article, we first present the reasons that the PSID has made such major contributions to research on the topic. Then we review the major papers that have used the PSID to study income volatility, comparing their results to those using other datasets. Last, we present new results for income volatility among U.S. men through 2014, finding that both gross volatility and the variance of transitory shocks display a three-phase trend: upward trends from the 1970s to the 1980s, a stable period in the 1990s through the early 2000s, and a large increase during the Great Recession.

scholarly journals The housing market-bank credit relationship: Some thoughts on its causality

2014 ◽  
Vol 61 (2) ◽  
pp. 145-160 ◽  
Author(s):  
Philip Arestis ◽  
Ana González
Keyword(s):  
Great Recession ◽  
Economic Activity ◽  
Economic Thought ◽  
Bank Credit ◽  
Demand For Money ◽  
The Great Recession ◽  
Developed Economies ◽  
Endogenous Money ◽  
Housing Bubbles ◽  
Development Of Economic Theory

The dominance of the orthodox paradigm over the last decades prior to the ?great recession? left no room for the notion of ?endogenous money? in the development of economic theory. However, this alternative direction of the causality of demand for money-credit and economic activity has been present in the heterodox economic thought since the 1930s and should be reconsidered in the current situation. In this context, the numerous episodes of housing bubbles, which have been taking place since 2007, create the perfect ?environment? to explore the notion of ?dynamic monetized production economy?. Our theoretical framework is estimated econometrically by using a sample of 6 developed economies which spans from 1970 to 2011. The non-stationary ?nature? of our data recommends the use of cointegration techniques (S?ren Johansen 1995) in order to estimate our models.

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