Income volatility and mobility: A conceptual exploration of two frameworks

Latner, Jonathan P.

doi:10.1016/j.rssm.2017.10.002

Cited by 13 publications

(10 citation statements)

References 21 publications

(49 reference statements)

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“…For example, among all families, the variability in pre‐tax and transfer income increased by 35% between 1980 and 2012 (Figure ; Hardy, ). Socioeconomically disadvantaged families—specifically those with less‐educated household heads, Black families, and families headed by a single‐mother—reported the highest levels of earnings and income volatility and the largest increases in volatility over time (Gennetian, Rodrigues, Hill, & Morris, ; Hardy, ; Hardy & Ziliak, ; Hryshko, Juhn, & McCue, ; Keys, ; Latner, ; Morduch & Schneider, ). Even married families are not necessarily protected from volatility because partners may work within the same sectors of the economy and suffer the same economic cycles (Ziliak et al, ).…”

Section: The Rise In Earnings and Income Volatilitymentioning

confidence: 99%

“…household heads, Black families, and families headed by a single-mother-reported the highest levels of earnings and income volatility and the largest increases in volatility over time (Gennetian, Rodrigues, Hill, & Morris, 2018a;Hardy, 2017;Hardy & Ziliak, 2014;Hryshko, Juhn, & McCue, 2017;Keys, 2008;Latner, 2018;Morduch & Schneider, 2016). Even married families are not necessarily protected from volatility because partners may work within the same sectors of the economy and suffer the same economic cycles (Ziliak et al, 2011).…”

Section: The Rise In Earnings and Income Volatilitymentioning

confidence: 99%

See 1 more Smart Citation

Strengthening Social Programs to Promote Economic Stability During Childhood

Hardy

Hill

Romich

2019

Social Policy Report

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Economic instability has increased in recent decades and is higher for families with low incomes and Black families. Such instability is thought to be driven primarily by precarious work and unstable family structure. In addition, the social safety net has become less of a stabilizing force for low‐income families, in part because benefits are often tied to employment and earnings. Too much change in economic circumstances may disrupt investments in children, parenting practices, and family routines—particularly if the economic changes are unpredictable, undesired, or not part of upward mobility. Given the considerable evidence that economic circumstances affect child health and development, economic stability can and should be an important goal of multiple policy domains. In this report, we describe economic instability, review the pertinent theories for considering how economic instability might matter to children, and describe ideas for policies that could reduce or moderate instability. We include policies that reduce instability in earnings, use public assistance to stabilize income or reduce material hardship, or enhance parents' capacity to deal with or avoid instability.

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Section: The Rise In Earnings and Income Volatilitymentioning

confidence: 99%

Section: The Rise In Earnings and Income Volatilitymentioning

confidence: 99%

Strengthening Social Programs to Promote Economic Stability During Childhood

Hardy

Hill

Romich

2019

Social Policy Report

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“…And now, as we exit this turbulent period, both variances also show signs of starting to decline from their recession peaks. Finally, new efforts are underway to link the concepts of instability and mobility in policy relevant ways (see Latner 2018).…”

Section: Volatility Instability and Mobilitymentioning

confidence: 99%

“…The PSID intragenerational mobility literature has focused on longer term movements up and down the income scale from a starting position. For instance, several studies have chronicled the way that “middle-class incomes” changed, with more upward than downward mobility during the 1970s and 1980s through the mid-1990s, to the opposite in more recent times (Bayaz-Ozturk, Burkhauser, and Couch 2013; DeBaker et al 2010; Duncan, Rodgers, and Smeeding 1993; Duncan et al 1996; Dynan et al 2012; Latner 2018; Shin and Solon 2011).…”

Section: Volatility Instability and Mobilitymentioning

confidence: 99%

The PSID in Research and Policy

Smeeding¹

2018

The ANNALS of the American Academy of Political and Social Scie

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The PSID has remained a valuable vehicle for evidence-based policy research for decades and should remain so for many more. In this short review, I cover major policy-related strengths from PSID research in the areas of event history analysis; mobility and volatility; cross national comparisons; health and health insurance; mobility into and out of poverty; the effects of parental income on children; and the use of the child development sample to broaden the PSID policy focus in new and interesting ways. I also include the emerging study of longer term intergenerational patterns of mobility and transfer, including across three generations. Finally, I take up the question of how PSID data and methods could be further improved to make the survey more valuable to public policy, focusing on administrative data linkages.

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“…First, most existing studies on family income volatility and developmental outcomes have mainly examined the effects of upward and downward volatility (e.g., Hardy, 2014 ). Although reference has been made to “fluctuating volatility” or “economic instability,” which refers to a combination of income gain and loss or vice versa, no research has so far examined the effect of this conceptualization on childhood outcomes ( Hill, 2018 ; Latner, 2018 ).…”

Section: Introductionmentioning

confidence: 99%

Changes in Cognitive Outcomes in Early Childhood: The Role of Family Income and Volatility

Sosu

Schmidt

2022

Front. Psychol.

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Associations between family income and child developmental outcomes are well documented. However, family income is not static but changes over time. Although this volatility represents income shocks that are likely to affect children’s lives, very few studies have so far examined its effect on early cognitive development. This study investigated associations between family income, volatility, and changes in cognitive outcomes in early childhood and examined whether these associations are dependent on a family’s overall income position. Data for the study spanned five waves of the Growing Up in Scotland longitudinal survey (N = 3,621). Findings indicate that income volatility was more prevalent among disadvantaged sociodemographic groups. In addition to average income, short-term volatility was associated with changes in child cognitive outcomes from ages 3 to 5. While upward volatility was associated with gains in expressive vocabulary, downward and fluctuating volatility were associated with declines in child problem-solving abilities. The association between volatility and changes in cognitive outcomes was similar for both children living in poverty and those from medium–high-income households. Our results suggest that policies aiming to cushion all families from negative income shocks, boost family income to ensure stability, and take low-income families out of poverty will have a significant impact on children’s cognitive development. Additionally, a more nuanced conceptualization of income is needed to understand its multidimensional impact on developmental outcomes.

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Income volatility and mobility: A conceptual exploration of two frameworks

Cited by 13 publications

References 21 publications

Strengthening Social Programs to Promote Economic Stability During Childhood

Strengthening Social Programs to Promote Economic Stability During Childhood

The PSID in Research and Policy

Changes in Cognitive Outcomes in Early Childhood: The Role of Family Income and Volatility

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