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Measures of Income Segregation

In this paper I propose a class of measures of rank-order segregation, each of which may be used to measure segregation by a continuous (but not necessarily interval-scaled) variable, such as income. These rank-order segregation indices have several appealing features that remedy flaws in existing measures of income segregation. First, the measures are insensitive to rank-preserving changes in the income distribution.

Income, Wealth and Debt and the Great Recession

The Great Depression is often cast as the beginning of the end for the late Gilded Age. Because it brought on the institutional reforms of the New Deal, it led to dramatic reductions in income inequality and set the stage for a long period of comparatively low inequality. The purpose of this recession brief is to ask whether the Great Recession, like the Great Depression, is likewise shaping up as a compressive event that will reverse some of the run-up in inequality of the so-called New Gilded Age.

Immigration and the Great Recession

Immigration has been a major component of demographic change in the United States over the past several decades, constituting at least a third of U.S. population growth and up to a half of labor force growth in any given year. By any standard, it is a central feature of the nation’s political economy and thus especially important to monitor as the Great Recession plays out.

How Has the Financial Crisis Affected the Finances of Older Households?

This brief considers the impact of recent declines in stock prices and nominal interest rates on older households, examining the effect of the crisis on the financial wealth of older households, the impact of the financial crisis on the investment and total incomes of retired households, and the impact of the financial crisis on lifetime consumption.

Who Claimed Social Security Early Due to the Great Recession?

Between 2007 and 2009, the percent of 62 year olds claiming Social Security benefits reversed a decade-long decline and increased sharply before reverting back to trend. This phenomenon raises two questions: 1) who was induced to claim early?; and 2) how much monthly retirement income have they lost as a result? To address these questions, this brief, which reflects findings from a recent paper, uses individual-level data from the Health and Retirement Study (HRS).

What's Right, What's Wrong, and What's Fixable: A Dispassionate Look at Executive Compensation

Alex Edmans and Xavier Gabaix suggest that increasing executive pay mainly reflects the real value of executives. But they also advocate for reforms that would induce executives to attend more to long-term profits and value.

Housing and the Great Recession

The story of the Great Recession cannot be told without addressing housing and, in particular, the dramatic decline in housing prices that began in late 2006. A distinctive feature of the Great Recession is its intimate connection to the housing sector; indeed many would argue that the Great Recession was triggered by the widespread failure of risky mortgage products. Whatever the sources of the Great Recession may have been, the housing sector is still deeply troubled and is a key contributor to our ongoing economic duress.

Health, Mental Health, and the Great Recession

Are we experiencing a "health recession"? While many think the impacts of the Great Recession are mostly confined to the labor and housing markets, the recession may also have taken a toll on health and wellbeing. In assessing such health impacts, it's important to distinguish between direct and indirect effects, the former pertaining to the health of those who are directly impacted by recession-induced negative events, such as unemployment, and the latter pertaining to the more diffuse behavioral changes that a recession may bring about among the general population.

How Does the Composition of Disability Insurance Applicants Change Across Business Cycles?

Much as in previous recessions, the number of applications to public disability insurance programs increased sharply during the Great Recession. We find that the composition of applicants also changes across business cycles. For example, applicants during economic downturns, and especially during the Great Recession, are younger, better educated, higher income, and more likely to have recent work experience.

How Much Protection Does a College Degree Afford? The Impact of the Recession on Recent College Graduates

Past research from Pew’s Economic Mobility Project has shown the power of a college education to both promote upward mobility and prevent downward mobility. The chances of moving from the bottom of the family income ladder all the way to the top are three times greater for someone with a college degree than for someone without one. Moreover, when compared with their less-credentialed counterparts, college graduates have been able to count on much higher earnings and lower unemployment rates.

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