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Asset Poverty in the United States, 1984-1999: Evidence from the Panel Study of Income Dynamics

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  • Asena Caner

    (Levy Institute)

  • Ed Wolff

    (Levy Institute and New York University)

Abstract

Using PSID data for the years 1984 to 1999, we estimate the level and severity of asset poverty. Our results indicate that the share of asset- poor households remained almost the same and the severity of poverty increased during this period, despite the growth in the economy and the financial markets. The race, age, education, and marital status of the household head, and homeownership, are important determinants of asset poverty. There seems to be a downward trend in the contribution to asset poverty of being a college graduate, a married elderly or a black head of household, a single mother, or a married person with children. The contributions of not having a college degree, being a 35 to 49 year-old household head, being a childless nonelderly couple, or being an unmarried elderly person seem to have increased. The contribution to net worth poverty of being a homeowner also went up. Descriptive statistics suggest that changes in the value of assets are more effective in transitions into and out of asset poverty than are changes in debt. Some lifetime events, such as changes in marital, homeownership, or business ownership status, are also correlated with the transitions.

Suggested Citation

  • Asena Caner & Ed Wolff, 2002. "Asset Poverty in the United States, 1984-1999: Evidence from the Panel Study of Income Dynamics," Microeconomics 0209002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0209002
    Note: Type of Document - Microsoft Word; prepared on IBM-PC; to print on postscript; pages: 89; figures: included
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    References listed on IDEAS

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    Cited by:

    1. Florin O. Bilbiie & Roland Straub, 2013. "Asset Market Participation, Monetary Policy Rules, and the Great Inflation," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 377-392, May.
    2. Bilbiie, Florin O. & Straub, Roland, 2012. "Changes in the output Euler equation and asset markets participation," Journal of Economic Dynamics and Control, Elsevier, vol. 36(11), pages 1659-1672.
    3. Edward N. Wolff & Ajit Zacharias & Asena Caner, 2005. "Household wealth, public consumption and economic well-being in the United States," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(6), pages 1073-1090, November.
    4. Fisher, Monica G. & Weber, Bruce A., 2004. "Does Economic Vulnerability Depend On Place Of Residence? Asset Poverty Across The Rural-Urban Continuum," Working Papers 18911, Oregon State University, Rural Poverty Research Center (RPRC).
    5. Asena Caner & Edward N. Wolff, "undated". "Asset Poverty in The United States: Its Persistence in an Expansionary Economy," Economics Public Policy Brief Archive ppb_76, Levy Economics Institute.
    6. Bilbiie, Florin O., 2020. "The New Keynesian cross," Journal of Monetary Economics, Elsevier, vol. 114(C), pages 90-108.
    7. repec:rre:publsh:v:34:y:2004:i:2:p:137-55 is not listed on IDEAS

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    More about this item

    Keywords

    poverty; labor market;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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