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- Title
EARNINGS MOBILITY: PERMANENT CHANGE OR TRANSITORY FLUCTUATIONS?
- Authors
Gottschalk, Peter
- Abstract
If a person's low earnings reflect an unforeseen but transitory experience, then an appropriate public policy response might be to focus on income maintenance or other policies which ease the burden during the transitional period. Alternatively, if a substantial proportion of people have permanently low earnings, there may be more serious structural problems in labor markets which need to be addressed. This article analyses whether the earning mobility reflects permanent changes in earnings or merely random fluctuations. The author presents the methodology data and basic findings of the study conducted. He shows how mobility patterns differ by demographic characteristics and describes the other sources of income received by families headed by a male with permanently low earnings. The logistic model used by the author offers a useful method of analyzing the relative impact of a set of characteristics on the probability that a person had permanently versus temporarily low earnings. He concludes that characteristics normally associated with low yearly earnings tended to lead disproportionately to permanently low earnings.
- Subjects
OCCUPATIONAL mobility; WAGES; LABOR mobility; POLITICAL planning; INDUSTRIAL organization (Economic theory); LABOR market; LONGITUDINAL method; ECONOMIC models
- Publication
Review of Economics & Statistics, 1982, Vol 64, Issue 3, p450
- ISSN
0034-6535
- Publication type
Article
- DOI
10.2307/1925943