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Job Instability and Earnings and Income Consequences: Evidence from SIPP: 1983-1995

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Author Info
John M. Fitzgerald

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Abstract

Transitory fluctuations in earnings have adverse consequences for the poor because of limited ability to smooth consumption. This paper investigates job instability and its consequences on earnings and income using 5 SIPP panels spanning 1983-1995. The paper discusses results for married men, the standard group for most studies, and for unmarried women, a group with welfare policy significance. The paper first looks at earnings fluctuations measured as a transitory coefficient of variation and then at job turnover. The less educated have greater relative earnings fluctuations and more turnover. For the age group 20-59 there is no apparent trend in instability for any education group. The paper then looks at the earnings and income consequences of both job loss and job changes. The earnings consequences of job change appear to improve for the less educated in the 90s, but there is no trend in income consequences. Family income shows greater relative transitory fluctuation than personal earnings due largely to earnings of other family members.

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Publisher Info
Paper provided by Northwestern University/University of Chicago Joint Center for Poverty Research in its series JCPR Working Papers with number 99.

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Date of creation: 01 Jul 1999
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Handle: RePEc:wop:jopovw:99

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September. [Downloadable!] (restricted)
  2. Peter Gottschalk & Robert Moffitt, 1994. "The Growth of Earnings Instability in the U.S. Labor Market," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 25(1994-2), pages 217-272. [Downloadable!]
  3. Stevens, Ann Huff, 1997. "Persistent Effects of Job Displacement: The Importance of Multiple Job Losses," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 165-88, January. [Downloadable!] (restricted)
  4. Kletzer, Lori G, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-36, Winter. [Downloadable!] (restricted)
  5. Bernhardt, Annette, et al, 1999. "Trends in Job Instability and Wages for Young Adult Men," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages S65-90, October. [Downloadable!] (restricted)
  6. Jaeger, David A. & Stevens, Ann Huff, 1999. "Is Job Stability in the United States Falling?," IZA Discussion Papers 35, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September. [Downloadable!] (restricted)
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  8. Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Kenneth A. Swinnerton & Howard Wial, 1995. "Is job stability declining in the U.S. economy?," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 48(2), pages 293-304, January.
  10. Diebold, Francis X & Neumark, David & Polsky, Daniel, 1997. "Job Stability in the United States," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 206-33, April. [Downloadable!] (restricted)
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