Using the P90/P10 Index to Measure US Inequality Trends with Current Population Survey Data: A View from Inside the Census Bureau Vaults*

The March Current Population Survey (CPS) is the primary data source for estimation of levels and trends in labor earnings and income inequality in the USA. Time-inconsistency problems related to top coding in theses data have led many researchers to use the ratio of the 90th and 10th percentiles of these distributions (P90/P10) rather than a more traditional summary measure of inequality. With access to public use and restricted-access internal CPS data, and bounding methods, we show that using P90/P10 does not completely obviate time-inconsistency problems, especially for household income inequality trends. Using internal data, we create consistent cell mean values for all top-coded public use values that, when used with public use data, closely track inequality trends in labor earnings and household income using internal data. But estimates of longer-term inequality trends with these corrected data based on P90/P10 differ from those based on the Gini coefficient. The choice of inequality measure matters.inequality, income, earnings, Current Population Survey, decile ratio, Gini coefficient

Measuring inequality using Censored data: A multiple imputation approach

To measure income inequality with right censored (topcoded) data, we propose multiple imputation for censored observations using draws from Generalized Beta of the Second Kind distributions to provide partially synthetic datasets analyzed using complete data methods. Estimation and inference uses Reiter’s (Survey Methodology 2003) formulae. Using Current Population Survey (CPS) internal data, we find few statistically significant differences in income inequality for pairs of years between 1995 and 2004. We also show that using CPS public use data with cell mean imputations may lead to incorrect inferences about inequality differences. Multiply-imputed public use data provide an intermediate solution.Income Inequality, Topcoding, Partially Synthetic Data, CPS, Current Population Survey, Generalized Beta of the Second Kind distribution

Measuring Inequality Using Censored Data: A Multiple Imputation Approach

To measure income inequality with right censored (topcoded) data, we propose multiple imputation for censored observations using draws from Generalized Beta of the Second Kind distributions to provide partially synthetic datasets analyzed using complete data methods. Estimation and inference uses Reiter’s (Survey Methodology 2003) formulae. Using Current Population Survey (CPS) internal data, we find few statistically significant differences in income inequality for pairs of years between 1995 and 2004. We also show that using CPS public use data with cell mean imputations may lead to incorrect inferences about inequality differences. Multiply-imputed public use data provide an intermediate solution.income inequality, topcoding, partially synthetic data, CPS, Current Population Survey, Generalized Beta of the Second Kind distribution

Measuring Inequality Using Censored Data: A Multiple Imputation Approach

To measure income inequality with right censored (topcoded) data, we propose multiple imputation for censored observations using draws from Generalized Beta of the Second Kind distributions to provide partially synthetic datasets analyzed using complete data methods. Estimation and inference uses Reiter's (Survey Methodology 2003) formulae. Using Current Population Survey (CPS) internal data, we find few statistically significant differences in income inequality for pairs of years between 1995 and 2004. We also show that using CPS public use data with cell mean imputations may lead to incorrect inferences about inequality differences. Multiply-imputed public use data provide an intermediate solution.Income inequality, topcoding, partially synthetic data, CPS, current population survey, generalized beta of the second kind distribution

Recent trends in top income shares in the USA: Reconciling estimates from March CPS and IRS tax return data

Although the majority of research on US income inequality trends is based on public-use March CPS data, a new wave of research using IRS tax return data reports substantially higher levels of inequality and faster growing trends. We show that these apparently inconsistent estimates are largely reconciled if the inequality measure and the income distribution are defined in the same way. Using internal CPS data for 1967–2006, we closely match IRS data-based estimates of top income shares reported by Piketty and Saez (2003). Our results imply that any inequality increases since 1993 are concentrated among the top 1 percent of the distribution.US Income Inequality, Top income shares, March CPS, IRS tax return data.

FÆLLESSPISNING MIDT I JYLLAND: Når det drejer sig mere om spisning og drikning end om mad og drikke

Richard P. Jenkins: Sociability in Mid- Jutland: When Eating and Drinking is the Point, rather than Food and Drink This paper is based upon nearly a year’s field research in a town in mid-westem Jutland, Denmark. Ethnographic data is presented about the range of occasions for eating and drinking which are available to its inhabitants: eating at home, meetings, annual general meetings, parties and celebrations, and public eating on demand and at need. The argument is made that the social occasions of eating and drinking are more significant than the food and drink itself. This is related to a complex of cultural values concemed with sociability, consensus, mutuality, communality and apparent equality, which finds its widest expression in the Danish welfare State. Developing changes in the structure of private life and households - and in the values just itemised - are related to changes in the organisation of eating and drinking. A more general argument is also offered, about the need to re-orient the study of food and drink towards a processual study of eating and drinking

Survey under-coverage of top incomes and estimation of inequality: what is the role of the UK’s SPI adjustment?

Survey under-coverage of top incomes leads to bias in survey-based estimates of overall income inequality. Using income tax record data in combination with survey data is a potential approach to address the problem; we consider here the UK’s pioneering ‘SPI adjustment’ method that implements this idea. Since 1992, the principal income distribution series (reported annually in Households Below Average Income) has been based on household survey data in which the incomes of a small number of ‘very rich’ individuals are adjusted using information from ‘very rich’ individuals in personal income tax return data. We explain what the procedure involves, reveal the extent to which it addresses survey under-coverage of top incomes, and show how it affects estimates of overall income inequality. More generally, we assess whether the SPI adjustment is fit for purpose and consider whether variants of it could be employed by other countries

Estimating Trends in US Income Inequality Using the Current Population Survey: The Importance of Controlling for Censoring

Using internal and public use March Current Population Survey (CPS) data, we analyze trends in US income inequality (1975-2004). We find that the upward trend in income inequality prior to 1993 significantly slowed thereafter once we control for top coding in the public use data and censoring in the internal data. Because both series do not capture trends at the very top of the income distribution, we use a multiple imputation approach in which values for censored observations are imputed using draws from a Generalized Beta distribution of the Second Kind (GB2) fitted to internal data. Doing so, we find income inequality trends similar to those derived from unadjusted internal data. Our trend results are generally robust to the choice of inequality index, whether Gini coefficient or other commonly-used indices. When we compare our best estimates of the income shares held by the richest tenth with those reported by Piketty and Saez (2003), our trends fairly closely match their trends, except for the top 1 percent of the distribution. Thus, we argue that if United States income inequality has been substantially increasing since 1993, such increases are confined to this very high income group.

Recent Trends in Top Income Shares in the USA: Reconciling Estimates from March CPS and IRS Tax Return Data

Although the vast majority of US research on trends in the inequality of family income is based on public-use March Current Population Survey (CPS) data, a new wave of research based on Internal Revenue Service (IRS) tax return data reports substantially higher levels of inequality and faster growing trends. We show that these apparently inconsistent estimates can largely be reconciled once one uses internal CPS data (which better captures the top of the income distribution than public-use CPS data) and defines the income distribution in the same way. Using internal CPS data for 1967–2006, we closely match the IRS data-based estimates of top income shares reported by Piketty and Saez (2003), with the exception of the share of the top 1 percent of the distribution during 1993–2000. Our results imply that, if inequality has increased substantially since 1993, the increase is confined to income changes for those in the top 1 percent of the distribution.

The Subduction experiment : cruise report RRS Charles Darwin cruise number 73 subduction 3 mooring deployment and recovery cruise, 30 September-26 October 1992

Subduction is the mechanism by which water masses formed in the mixed layer and near the surface of the ocean find their way into the upper thermocline. The subduction process and its underlying mechanisms were studied through a combination of Eulerian and Langrangian measurements of velocity, measurements of tracer distrbutions and hydrographic properties and modeling. An array of five surface moorings carrying meteorological and oceanographic instrumentation were deployed for a period of two years beginning in June 1991 as part of an Office of Naval Research (ONR) funded Subduction experiment. Three eight month deployments were planned. The moorings were deployed at 18°N 34°W, 18°N 22°W, 25.5°N 29°W, 33°N 22°W and 33°N 34°W. A Vector Averaging Wind Recorder (VAWR) and an Improved Meteorological Recorder (IMET) collected wind speed and wind direction, sea surface temperature, air temperature, short wave radiation, barometric pressure and relative humidity. The IMET also measured precipitation. The moorings were heavily instrumented below the surface with Vector Measuring Current Meters (VMCM), and single point temperature recorders. Expendable bathythermograph (XBT) data were collected and meteorological observations were made while transitting between mooring locations. In addition a series of 59 cm stations were made and water samples taken to be analyzed for tritium levels, salinity and dissolved oxygen content. This report describes the work that took place during RRS Charles Darwin cruise number 73 which was the third scheduled Subduction mooring cruise. During this cruise the second setting of the moorings were recovered and redeployed for a third eight month period. This report includes a description of the instrumentation that was deployed and recovered, has information about the underway measurements (XBT and meteorological observations) that were made including plots of the data, includes a description of the work conducted in conjunction with the tracer/hydrography program and presents a chronology of the cruise events.Funding was provided by the Office of Naval Research under contract N00014-90-J-1490