ERIC Number: ED574664
Record Type: Non-Journal
Publication Date: 2012-Aug
Pages: 45
Abstractor: As Provided
Reference Count: 68
ISBN: N/A
ISSN: ISSN-1936-9379
Childhood Income Volatility and Adult Outcomes. University of Kentucky Center for Poverty Research Discussion Paper Series, DP2012-03
Hardy, Bradley
University of Kentucky Center for Poverty Research
Using data linked across generations in the Panel Study of Income Dynamics, I estimate the relationship between exposure to volatile income during childhood and a set of socioeconomic outcomes in adulthood. The empirical framework is an augmented intergenerational income mobility model that includes controls for income volatility. I measure income volatility at the family level in two ways. First, instability as measured by squared deviations around a family-specific mean, and then as percent changes of 25 percent or more. Volatility enters the model both separately and interacted with income level. I find that family income instability during childhood has a small, positive association with high school dropout--one which appears driven by volatility among children from lower income households. Evidence suggests that volatility exposure generally has a minimal impact on intergenerational outcomes relative to permanent income.
Descriptors: Correlation, Family Income, Socioeconomic Influences, Children, Adults, Dropouts, High School Students, Educational Attainment, Mobility, Labor Market, Generational Differences, Longitudinal Studies, Statistical Analysis, Gender Differences, Racial Differences, Ethnic Groups, Human Capital, Economic Factors
University of Kentucky Center for Poverty Research. 302D Mathews Building, Lexington, KY 40506. Tel: 859-257-7641; Fax: 859-257-6959; e-mail: ukcpr@uky.edu; Web site: http://www.ukcpr.org
Publication Type: Reports - Research
Education Level: High Schools; Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: University of Kentucky Center for Poverty Research
Identifiers - Location: Michigan