On the Heterogeneity in Family Earnings and Income Dynamics in the PSID
AEA Papers and Proceedings
vol. 108,
May 2018
(pp. 292-96)
Abstract
A large body of knowledge on income dynamics in the United States is based on data from the Panel Study of Income Dynamics (PSID). We find two sets of households in the PSID that differ dramatically in the dynamics of their income. Households headed by the sons of original PSID members have a highly persistent income process, whereas households headed by males who marry daughters of the original PSID members have a much less persistent income process. Using a variety of methods for identification of the persistence of income shocks, we show that these differences, albeit surprising, are highly robust.Citation
Hryshko, Dmytro, and Iourii Manovskii. 2018. "On the Heterogeneity in Family Earnings and Income Dynamics in the PSID." AEA Papers and Proceedings, 108: 292-96. DOI: 10.1257/pandp.20181051Additional Materials
JEL Classification
- C81 Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- D13 Household Production and Intrahousehold Allocation
- J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse
- J31 Wage Level and Structure; Wage Differentials