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Monthly household income volatility in the U.S., 1991/92 vs. 2002/03

Author

Listed:
  • Neil Bania

    () (University of Oregon)

  • Laura Leete

    () (University of Oregon)

Abstract

We investigate changes in monthly income volatility in non-elderly households in the U.S. since the early 1990s. Using the Survey of Income and Program Participation (SIPP), we find that monthly income volatility is highest for lower income households, and that it increased substantially for these households between 1992 and 2003. The increase appears to have its roots in the shift of household income away from relatively stable public assistance (AFDC/TANF) benefits and towards earnings. We subject these findings to sensitivity analyses and find similar results. We also find increases in volatility among households with incomes above the poverty line, but these findings are less robust in the face of some sensitivity analyses.

Suggested Citation

  • Neil Bania & Laura Leete, 2009. "Monthly household income volatility in the U.S., 1991/92 vs. 2002/03," Economics Bulletin, AccessEcon, vol. 29(3), pages 2100-2112.
  • Handle: RePEc:ebl:ecbull:eb-08i30028
    as

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    References listed on IDEAS

    as
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    7. Barrow, Lisa & McGranahan, Leslie, 2000. "The Effects of the Earned Income Credit on the Seasonality of Household Expenditures," National Tax Journal, National Tax Association, vol. 53(n. 4), pages 1211-44, December.
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    Citations

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    Cited by:

    1. Louis Chauvel & Anne Hartung & Flaviana Palmisano, 2017. "Dynamics of Income Rank Volatility: Evidence from Germany and the US," SOEPpapers on Multidisciplinary Panel Data Research 926, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Bruce Western & Deirdre Bloome & Benjamin Sosnaud & Laura M. Tach, 2016. "Trends in Income Insecurity Among U.S. Children, 1984–2010," Demography, Springer;Population Association of America (PAA), vol. 53(2), pages 419-447, April.
    3. Robert A. Moffitt & Sisi Zhang, 2018. "Income Volatility and the PSID: Past Research and New Results," NBER Working Papers 24390, National Bureau of Economic Research, Inc.
    4. Robert Moffitt & Sisi Zhang, 2018. "Income Volatility and the PSID: Past Research and New Results," Working Papers 2018-016, Human Capital and Economic Opportunity Working Group.
    5. Kyle F. Herkenhoff & Lee E. Ohanian, 2011. "Labor Market Dysfunction During the Great Recession," NBER Working Papers 17313, National Bureau of Economic Research, Inc.
    6. Beatty, Timothy K.M. & Tuttle, Charlotte, 2012. "The Effect of Energy Price Shocks on Household Food Security," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124791, Agricultural and Applied Economics Association.
    7. Jennifer Romich Heather D. Hill & University of Washington, "undated". "Income Instability and Income Support Programs: Recommendations for Policy and Practice," Mathematica Policy Research Reports 8f4712fa91fe423dbbc65d943, Mathematica Policy Research.
    8. Beatty, Timothy K.M. & Tuttle, Charlotte, 2014. "The Effect of Energy Price Shocks on Household Food Security: Do Federal Assistance Programs Mitigate the Effects of Price Shocks," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170546, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    poverty; income volatility; income assistance; welfare reform;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D3 - Microeconomics - - Distribution

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