{"title":"Trends in the Covariance Structure of Earnings in the U.S.: 1969-1987.","authors":"Robert A Moffitt, Peter Gottschalk","doi":"10.1007/s10888-010-9154-z","DOIUrl":null,"url":null,"abstract":"<p><p>We examine the increasing variance of earnings of white men over the 1970s and 1980s by focusing on changes in the covariance structure of earnings. Using data from the Michigan PSID from 1969-1987, we find that about half of the increase has arisen from an increase in the variance of the permanent component of earnings and half from an increase in the variance of the transitory component, where the transitory component is composed of serially correlated shocks that die out within three years. We thus find that increases in the variability of earnings are of equal importance to increases in the dispersion of permanent earnings in explaining recent increases in earnings inequality.</p>","PeriodicalId":51559,"journal":{"name":"Journal of Economic Inequality","volume":"9 3","pages":"439-459"},"PeriodicalIF":3.6000,"publicationDate":"2011-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1007/s10888-010-9154-z","citationCount":"104","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Economic Inequality","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1007/s10888-010-9154-z","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 104
Abstract
We examine the increasing variance of earnings of white men over the 1970s and 1980s by focusing on changes in the covariance structure of earnings. Using data from the Michigan PSID from 1969-1987, we find that about half of the increase has arisen from an increase in the variance of the permanent component of earnings and half from an increase in the variance of the transitory component, where the transitory component is composed of serially correlated shocks that die out within three years. We thus find that increases in the variability of earnings are of equal importance to increases in the dispersion of permanent earnings in explaining recent increases in earnings inequality.
期刊介绍：
The Journal of Economic Inequality provides a forum for analysis of ''economic inequality'', broadly defined. Its scope includes: · Theoretical and empirical analysis· Monetary measures of ''well-being'' such as earnings, income, consumption, and wealth; non-monetary measures such as educational achievement and health and health care; multidimensional measures· Inequality and poverty within and between countries, and globally, and their trends over time· Inequalities of opportunity· Income mobility and poverty persistence· The factor distribution of income· Differences in ''well-being'' between socioeconomic groups, for example between men and women, generations, or ethnic groups· The effects of inequality on macroeconomic and other phenomena, and vice versa· Related statistical methods and data issues · Related policy analysis Papers need to prioritize the ''economic inequality'' dimension. For example, papers about trade and inequality, or inequality and growth, should not primarily be about trade or growth (in which case they should target a different journal). The same is true for papers considering the inter-relationships between the income distribution and the labour market, public policy, or demography.
Officially cited as: J Econ Inequal
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