USING THE PARETO DISTRIBUTION TO IMPROVE ESTIMATES OF TOPCODED EARNINGS

Inconsistent censoring in the public‐use March Current Population Survey (CPS) limits its usefulness in measuring labor earnings trends, as previous approaches for imputing topcoded earnings systematically understate top earnings. Using Pareto estimation methods with less‐censored internal data, we create an enhanced cell‐mean series to capture top earnings in the public‐use data. Annual earnings inequality trends since 1963 using our series largely mirror those found by Kopczuk, Saez, and Song using social security administration data for commerce and industry workers. When we extend our analysis to 2013 and consider all workers, earnings inequality levels are higher but its growth is more modest. (JEL C81, D31, J01)     

An extension of the classical A B C inventory control system

The conventional method of controlling inventories of relatively fast moving items in a store is based on an A B C classification of the stock items. An analysis is presented for the extension of this method to determine the number of categories that should be employed and the way in which the different items should be allocated to these categories. A case study is briefly described to illustrate the application of this methodology.     

The timing of falls into poverty after retirement and widowhood

A major concern of workers, even those financially prepared for retirement, is that a small risk of poverty may grow over time. Cross-sectional data showing that older cohorts have higher poverty rates substantiate this concern. Using data from the Retirement History Study, we analyze changes in the hazard of entering poverty as a cohort of elderly couples retire and age and the wives are widowed. The initial fall into poverty among those who were not poor before the husband retired is more closely linked to the event of retirement or widowhood than to the slowly eroding household income over the period of retirement and widowhood. The death of her retired husband puts a wife in economic jeopardy whether this shock occurs one year after his retirement or some years later.     

Australia Farewell: Predictors of Emigration in the 2000s

The factors leading individuals to immigrate to developed contexts are widely studied, but comparatively less is known about those who emigrate from them. In this paper, we use data from a nationally representative cohort of Australian adults to develop longitudinal measures of emigration and to assess how social ties and individual economic position predict emigration. Cox proportional hazards models indicate that the propensity to emigrate is particularly pronounced for those with relatively little social connectedness in Australia. Specifically, our results show that first-generation Australians, especially those with relatively short durations in the country, have substantially higher emigration rates than later-generation Australians. Similarly, having a partner with deeper generational roots in Australia strongly reduces the likelihood to emigrate. At the same time, our analysis also shows that economic position matters, with the not employed having higher risks of emigration. Perhaps most interestingly, estimates from our models reveal that those with university degrees are much more likely to emigrate than individuals with lower levels of education, a finding that is true for both first- and later-generation Australians.     

Estimating trends in US income inequality using the Current Population Survey: the importance of controlling for censoring

We analyze trends in US size-adjusted household income inequality between 1975 and 2004 using the most commonly used data source—the public use version of the March Current Population Survey. But, unlike most researchers, we also give substantial attention to the problems caused by the topcoding of each income source in the CPS data. Exploiting our access to Census Bureau internal CPS data, we examine estimates from data incorporating imputations for topcoded incomes derived from cell means and estimates from data multiply-imputed from parametric distribution models. Our analysis yields robust conclusions about inequality trends. The upward trend in US income inequality that began in the mid-1970s and increased in the 1980s slowed markedly after 1993.     

Wife or frau,women do worse: A comparison of men and women in the United States and Germany after marital dissolution

Longitudinal data from the Panel Study of Income Dynamics and the German Socio-Economic Panel show that in the Federal Republic of Germany, women experience even sharper drops in economic status immediately after a marital split than in the United States, while German and American men fare about the same. German social policy does little to reduce the disparities.     

Self-reported work-limitation data: what they can and cannot tell us

Despite their widespread use in the literature, the Current Population Survey (CPS) and similar surveys have come under attack of late. We put the criticisms in perspective by systematically examining what the CPS data can and cannot be used for in disability research compared to the National Health Interview Survey. On the basis of our findings, we argue (1) that the CPS can be used to monitor trends in outcomes of those with disabilities and (2) that the dramatic decline in the employment of people with disabilities we describe in the CPS during the 1990s is not an artifact of the data.