Distributional characteristics of income insecurity in the U.S., Germany, and Britain

Rohde, Nicholas, Tang, Kam Ki and Rao, D. S. Prasada (2014) Distributional characteristics of income insecurity in the U.S., Germany, and Britain. Review of Income and Wealth, 60 S1: S159-S176. doi:10.1111/roiw.12089


Author Rohde, Nicholas
Tang, Kam Ki
Rao, D. S. Prasada
Title Distributional characteristics of income insecurity in the U.S., Germany, and Britain
Journal name Review of Income and Wealth   Check publisher's open access policy
ISSN 1475-4991
0034-6586
Publication date 2014-05-01
Year available 2014
Sub-type Article (original research)
DOI 10.1111/roiw.12089
Volume 60
Issue S1
Start page S159
End page S176
Total pages 18
Place of publication Chichester, West Sussex, England
Publisher Wiley-Blackwell Publishing
Language eng
Abstract This paper studies income volatility using recent data from the Cross National Equivalence File (CNEF). Measures of downward instability are applied to household income streams and the results are interpreted as indicators of income insecurity. Using this method we examine (i) cross national differences in average insecurity levels, (ii) the effects of taxes and transfers, and (iii) relationships between the insecurity index and household income. Insecurity estimates based on pre-government incomes are highest in Britain and lowest in Germany, however results for post-government incomes are highest in the U.S. It is also shown that insecurity estimates based upon pre-government incomes are heavily concentrated at the lower end of the distribution; although governments are effective at smoothing the income streams of these households. We also search for determinants of our measure and find that gender, household size, health status, and industry affiliations of the household head are the most significant covariates.
Keyword Economic insecurity
Income volatility
Risk
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2015 Collection
School of Economics Publications
 
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