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Earnings Capacity, Poverty, and Inequality describes the development and application of a way to measure economic status that will avoid some mistakes occurring in methods of measurement. The book reviews the concept of earnings capacity through different measures of economic status. The authors discuss the procedures used in estimating family revenue, sources of data, and inherent weaknesses in such measures. They consider the degree to which different groups classified by age, sex, race, or economic status use their earnings capacity. The authors compare income utilization of those who are considered poor using both measures of earning capacity and current income. Then, a common government and academic policy known as the target efficient — the proportion of total benefits allocated to poor families — is discussed. The authors cite two important factors: 1) estimates of target efficiency are affected by how poverty is defined and 2) target efficiency of transfer programs changes when the economic status method is used instead of the income method. The authors also examine the effects of labor market discrimination on the earning differences between two races. The text will prove useful for sociologists, psychologists, economists, and students of political science and population demographics.
1 Measuring Economic Status: The Concept of Earnings Capacity
Alternative Measures of Economic Status
The Present Study
2 The Measurement of Earnings Capacity
Data and Methodology
Weaknesses in the Measure of Earnings Capacity
3 Economic Inequality and the Utilization of Earnings Capacity
Aggregate Capacity Utilization and Its Components
Patterns of Capacity Utilization within the Nonaged Population
Earnings Capacity and Economic Inequality
4 Earnings Capacity and Poverty
The Earnings Capacity Poor and the Current Income Poor
Determinants of Poverty Status Based on Earnings Capacity and Current Income
The Probability of Poverty Status for Various Family Types
5 Earnings Capacity and the Target Efficiency of Income Transfer Policies
6 Labor Market Discrimination and Black-White Differences in Economic Status
Racial Differences in Economic Status
The Role of Labor Market Discrimination
Conceptual Framework and Empirical Problems
Empirical Procedure and Assumptions
Measuring the Effect of Labor Market Discrimination
Estimates of Labor Market Discrimination
Reliability of the Methodology
Labor Market Discrimination and the Distribution of Earnings Capacity
Labor Market Discrimination and Inequality
7 Earnings Capacity and Economic Status: Summary
A Summary and Some Policy Implications
A Look Back and a Look Ahead
Appendix A Estimating Lorenz Curves and Gini Coefficients
Appendix B Effect of Randomization on Estimates of Earnings Capacity
Appendix C Composition of the Earnings Capacity and Current Income Poor in the Nonaged Population
Appendix D Earnings Functions from Michigan Income Dynamics Panel Study Data
Appendix E Upper and Lower Bound Measures of the Role of Labor Market Discrimination
- No. of pages:
- © Academic Press 1977
- 1st January 1977
- Academic Press
- eBook ISBN:
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