Working Paper: NBER ID: w14075
Authors: Donggyun Shin; Gary Solon
Abstract: Using Panel Study of Income Dynamics data for 1969 through 2004, we examine movements in men's earnings volatility. Like many previous studies, we find that earnings volatility is substantially countercyclical. As for secular trends, we find that men's earnings volatility increased during the 1970s, but did not show a clear trend afterwards until a new upward trend appeared in the last few years. These patterns are broadly consistent with the findings of recent studies based on other data sets.
Keywords: earnings volatility; Panel Study of Income Dynamics; economic inequality; labor market
JEL Codes: D31; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Economic conditions of the 1970s (E65) | Increased men's earnings volatility (J39) |
| Fluctuations in annual hours worked (J22) | Increased men's earnings volatility (J39) |
| Economic conditions around 2000 (N12) | New upward trend in men's earnings volatility (E32) |
| Broader economic patterns (such as recessions) (E32) | Increased men's earnings volatility (J39) |