U.S. Income Mobility in the Seventies and Eighties

Hungerford, Thomas L.

doi:10.1111/j.1475-4991.1993.tb00470.x

Cited by 57 publications

(34 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Some empirical studies document intergenerational mobility, (see Behrman & Taubman (1990), Solon (1992), and Zimmerman (1992)) while others concentrate on the mobility of the same individual (see Duncan & Morgan (1984), Sawhill & Condon (1992) and Hungerford (1993)). Theoretical approaches typically examine intergenerational mobility (see, for example, Banerjee & Newman (1991, 1993 and Aghion & Bolton (1997)). In contrast, this study is primarily interested in analyzing the mobility properties experienced by different economic agents, namely, enterprising households as compared to other households within one generation.…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurship, Saving, and Social Mobility

Quadrini¹

2000

Review of Economic Dynamics

523

377

View full text Add to dashboard Cite

This paper examines entrepreneurship in order to analyze, first, the degree to which the opportunity to start or own a business affects the household's saving behavior and the implication of this behavior for the distribution of wealth and, second, the relationship between the extent of entrepreneurship in the economy and socioeconomic mobility, that is, the movement of families across wealth classes over time.First, a number of stylized facts based on data from the Panel Study of Income Dynamics and the Survey of Consumer Finances are outlined. They show relevant differences in asset holdings and wealth mobility between entrepreneurs and workers. Second, a dynamic general equilibrium model with an explicit formalization of the entrepreneurial choice is developed. Through the modeling of the entrepreneurial activities, the model generates a concentration of wealth similar to the one observed in the U. S. economy and it replicates the main patterns of wealth mobility in which entrepreneurs experience higher upward mobility than workers. (JEL E21,D31,J23)

show abstract

Section: Introductionmentioning

confidence: 99%

Entrepreneurship, Saving, and Social Mobility

Quadrini¹

2000

Review of Economic Dynamics

523

377

View full text Add to dashboard Cite

show abstract

“…In addition a large number of studies have examined the related issue of economic mobility over at least part of the same time period (cf. Buchinsky and Hunt, 1996;Gittleman and Joyce, 1995;Moffitt and Gottschalk, 1993;Hungerford, 1993). This study differs from the existing literature in several ways.…”

Section: Summary Of the Literaturementioning

confidence: 62%

The Rise in Lifetime Earnings Inequality Among Men

Aaronson¹

2002

SSRN Journal

View full text Add to dashboard Cite

Recent trends in lifetime earnings inequality in the United States have been barely explored, despite the fact that lifetime earnings are a better measure of access to resources than the more widely studied annual earnings. This paper demonstrates that lifetime earnings inequality has increased over the past 30 years. We first explore how starting wages and wage growth have changed over time and link the changes to trends in lifetime earnings and the lifetime skill-premium. We then calculated a broader measure of lifetime earnings inequality and show that since the late 1960s, lifetime earnings inequality has increased by a third. Between the late 1960s and mid-1970s a rise in within-education-group inequality more than accounts for the increase; since then the growth in between-educationgroup inequality, accounted for a majority of the rise. These results are consonant with the data on starting wages and wage growth. Finally, we show that the increase in inequality has been largely driven by greater dispersion in hourly wages, although declining hours of work among low-education young men did play a role. The analysis uses data from the March Current Population Survey as well as matched CPS data. Thus we demonstrate how repeated cross-sections and short panels of data can be used to examine issues usually reserved for long panels.

show abstract

“…It increases more noticeably at the beginning of 1990s (particularly the 1-IR index), but then returns to previous levels towards the end of the sample. The comparison of this evidence with that found in the literature is difficult, since many studies focus on income mobility during a longer time horizon (see for example Hungerford (1993) and those cited in Jäntti and Jenkins (2015)). However, Gittleman and Joyce (1999) considers similar mobility indices for 1, 5 and 10-year windows between 1969 and 1990.…”

mentioning

confidence: 87%

“…A number of papers have investigated the degree and evolution of mobility in terms of income (broadly defined) and earnings. Hungerford (1993) uses family income data from the PSID to analyse trends in mobility, focusing on changes in the position in the income distribution between 7 year-periods in both annual and permanent income. The author compares mobility between the 1970s and 1980s to find considerable movement within the income distribution (although he finds less evidence of sizeable upward or downward movements).…”

mentioning

confidence: 99%

The Impact of Taxes on Income Mobility

Alloza

2017

SSRN Journal

View full text Add to dashboard Cite

This paper investigates how taxes affect relative mobility in the income distribution in the US. Household panel data drawn from the PSID between 1967 and 1996 is employed to analyse the relationship between marginal tax rates and the probability of staying in the same income decile. Exogenous variation in marginal tax rates is identified by using counterfactual rates based on legislated changes in the tax schedule. I find that higher marginal tax rates reduce income mobility.An increase in one percentage point in marginal tax rates causes a decline of around 0.8% in the probability of changing to a different income decile. Tax reforms that reduce marginal rates by 7 percentage points are estimated to account for around a tenth of the average movements in the income distribution in a year.Additional results suggest that the effect of taxes on income mobility differs according to the level of human capital and that it is particularly significant when considering mobility at the bottom of the distribution.

show abstract

U.S. Income Mobility in the Seventies and Eighties

Cited by 57 publications

References 1 publication

Entrepreneurship, Saving, and Social Mobility

Entrepreneurship, Saving, and Social Mobility

The Rise in Lifetime Earnings Inequality Among Men

The Impact of Taxes on Income Mobility

Contact Info

Product

Resources

About