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Trends in the Transitory Variance of Earnings in the United States
Abstract
We decompose the rise in cross-sectional variance of male annual earnings in the United States from 1969 to 1996 into permanent and transitory components. We find that the variance of permanent earnings began rising in the the late 1970s and has continued to rise in the 1980s. The variance of transitory earnings also rose in the 1980s but declined in the 1990s. There are lags in the earnings process which require a structural model to pinpoint the exact calendar times at which the changes in trends occurred.
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Citations
Cited by
HACKER, J. S. (2004) · American Political Science Review · doi:10.1017/s0003055404001121 · Cited by 1,543
Transition Modeling and Econometric Convergence Tests
Phillips, P. C. B., & Sul, D. (2007) · Econometrica · doi:10.1111/j.1468-0262.2007.00811.x · Cited by 1,451
Consumption inequality and partial insurance
Blundell, R., Pistaferri, L., & Preston, I. (2004) · Working Paper Series · doi:10.1920/wp.ifs.2004.0428 · Cited by 846
Inequality: Causes and Consequences
Neckerman, K. M., & Torche, F. (2007) · Annual Review of Sociology · doi:10.1146/annurev.soc.33.040406.131755 · Cited by 498
(2006) · doi:10.1002/ajim.20373 · Cited by 249
Metadata
- Authors
- Moffitt, R. A., & Gottschalk, P.
- Venue
- The Economic Journal
- Publisher
- Oxford University Press (OUP)
- Published
- 2002-03-01
- Volume
- 112
- Issue
- 478
- Pages
- C68-C73
- ISSN
- 0013-0133 (ISSN-L)
- 1468-0297
- OpenAlex
- W2026965355
- Cited by
- 308
- References
- 0
- FWCI
- 15.16
- Type
- journal article
- Language
- en
- Open access
- closed
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