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Social capital-the strength of an individual's social network and community-has been identified as a potential determinant of outcomes ranging from education to health 1-8 . However, efforts to understand what types of social capital matter for these outcomes have been hindered by a lack of social network data. Here, in the first of a pair of papers 9 , we use data on 21 billion friendships from Facebook to study social capital. We measure and analyse three types of social capital by ZIP (postal) code in the United States: (1) connectedness between different types of people, such as those with low versus high socioeconomic status (SES); (2) social cohesion, such as the extent of cliques in friendship networks; and (3) civic engagement, such as rates of volunteering. These measures vary substantially across areas, but are not highly correlated with each other. We demonstrate the importance of distinguishing these forms of social capital by analysing their associations with economic mobility across areas. The share of high-SES friends among individuals with low SES-which we term economic connectedness-is among the strongest predictors of upward income mobility identified to date 10,11 . Other social capital measures are not strongly associated with economic mobility. If children with low-SES parents were to grow up in counties with economic connectedness comparable to that of the average child with high-SES parents, their incomes in adulthood would increase by 20% on average. Differences in economic connectedness can explain well-known relationships between upward income mobility and racial segregation, poverty rates, and inequality 12-14 . To support further research and policy interventions, we publicly release privacy-protected statistics on social capital by ZIP code at https://www.socialcapital.org ., (© 2022. The Author(s).)

The article discusses a paper by Robert Moffitt and Peter Gottschalk entitled "Trends in the Covariance Structure of Earnings in the U.S.: 1969-1987." According to Moffitt, their paper was econometrically sophisticated and was partly a methodological contribution. They use Panel Study of Income Dynamics (PSID) data for 1969-1987. They find that the increase in the variance of the logarithm of men's earnings over the period was due to increases in transitory variance and the permanent variance.

In an increasingly mobile world, the integration of immigrants and displaced individuals is an important factor in creating cohesive and inclusive societies. Integration has different dimensions; this scoping review examines the conceptualization and measurement of economic integration among immigrants and refugees in the United States. Quantitative peer-reviewed journal papers measuring or conceptualizing the economic integration of first-generation documented adult immigrants or refugees in the United States, as well as relevant conceptual or theory papers on this topic, were included in the review. The search strategy included an online search of the Web of Science Core Collection, PsycINFO, Applied Social Sciences Index and Abstracts (ASSIA), and EconLit. Additional search strategies included scanning the reference lists of studies identified as relevant in the initial database search. An analysis of 72 studies included in the review using a data extraction table reveals seven key domains of economic integration: income and economic security, employment and occupational categories, assets and use of financial services, neighborhood and housing, health, education, and use of public assistance. Income and economic security emerged as the most common indicators of integration in the reviewed studies. Notably, less than half of the reviewed publications had a multidimensional approach to defining or measuring economic integration, and the majority of studies were focused on immigrants, with a smaller proportion dedicated to refugees. This review emphasizes the need for comprehensive frameworks in assessing economic integration among immigrants and refugees, reflecting the multifaceted nature of their economic integration experiences. [ABSTRACT FROM AUTHOR]

In a recent paper, Reardon found that the relationship between family income and children's academic achievement grew substantially stronger in the 1980s and 1990s in the United States. We provide an international context for these results by examining the income-achievement association in 19 other Organisation for Economic Co-operation and Development countries using data from the Progress in International Reading Literacy Study and the Programme for International Student Assessment. First, we calculate and compare the magnitude of "income achievement gaps" across this sample of countries. Second, we investigate the association between the size of a country's income achievement gap, its income inequality, and a variety of other country characteristics. We find considerable variation across countries in income achievement gaps. Moreover, the U.S. income achievement gap is quite large in comparison to this sample of countries. Our multivariate analyses show that the income achievement gap is positively associated with educational differentiation, modestly negatively associated with curricular standardization, and positively associated with national levels of poverty and inequality.

At the Joint OECD/University of Maryland Conference on "Measuring Poverty, Income Inequality, and Social Exclusion: Lessons from Europe" (held in Paris, 2009), many of the conference papers focused on alternative measures of income, evaluating their impacts on inequality and poverty. The conference papers highlighted the impact of making detailed changes that affect measurement. These details, in turn, provide insight for the larger context of determining the "best" resource measure to use for poverty and inequality measurement. In many cases, the details do not change the picture of the trend in poverty, or even the comparisons across countries, but they often change the composition of the poor. Examining the details helps to logically connect the parts to form a satisfactory whole or picture. As it is often difficult to clarify all of the details and obtain the "best" measure, the main focus should be on obtaining a sufficient statistic that reflects a country's poverty or inequality and that can be compared over time and across countries. In this article, the author points out that in order to evaluate how the logical connection of parts affect the overall picture of poverty, one must answer the "Who," "What," "Where," "When," "Why," and "How" of poverty measurement: Who is the unit of analysis (and the choice of equivalence scale); What resource measure will be used; Where is poverty measured (and does it differ by geographic location); When is poverty measured (and does it change over time); Why is poverty measured and what is the purpose; How is the poverty threshold constructed and used? (Contains 10 footnotes and 1 table.)

The purpose of the paper is to assess the theory that the downside risk insurance provided by more generous welfare states generates long run efficiency gains, which counterbalance the short run efficiency losses caused by work disincentives in these states (Feldstein 1974, 1976; Sinn 1995, 1996). Testing downside risk theory requires long term data, so the paper makes use of the three longest running national socio-economic panel surveys. These are the American Panel Study of Income Dynamics (PSID, 1968-), the German Socio-Economic Panel (1984-) and the Dutch Socio-Economic Panel (SEP, 1984-). The paper focusses on prime age households (heads 25-59) and assesses their participation in and returns to adult education and job training. Our results indicate some support for the theory in so far as Dutch and German prime age adults, living in more generous welfare states, were much more likely than Americans to take the risk of foregoing current earnings and investing in additional education. In all three countries returns on investment were substantial.

In a period of student loan scandals and U.S. financial market instability impacting on the cost and availability of student loans, this paper looks at alternative models of higher education funding. In this context, it also considers the level of financial support that the government should provide to higher education.

Growing concern about the quality of public education in the United States has driven numerous educational reform efforts across the last three decades. These reforms include increased accountability as exemplified by various requirements of the federal No Child Left Behind Act, the introduction of new curriculum and instructional methods in response to the standards movement and the redesign of public high schools, with an increased focus on creating small schools and small learning communities. Studies suggest students in small public high schools perform better academically, have higher attendance rates, feel safer, experience fewer behavior problems and participate more frequently in extracurricular activities. Additional studies show students who stand to benefit most from small school environments are those most in need, namely low-income students in low-achieving high schools in large urban areas, where graduation rates and low attendance are major problems. A 2007 study by New York University's Institute for Education and Social Policy reported that small schools have been shown to provide a positive social, as well as academic environment for students, and more effective interaction between students, teachers and administrative staff, contributing to higher attendance and graduation rates. (Contains 1 figure.)

Ample evidence indicates that a person's human capital is important for success on the labor market in terms of both wages and employment prospects. However, unlike the efforts to identify the impact of school attainment on labor-market outcomes, the literature on returns to cognitive skills has not yet provided convincing evidence that the estimated returns can be causally interpreted. Using the PIAAC Survey of Adult Skills, this paper explores several approaches that aim to address potential threats to causal identification of returns to skills, in terms of both higher wages and better employment chances. We address measurement error by exploiting the fact that PIAAC measures skills in several domains. Furthermore, we estimate instrumental-variable models that use skill variation stemming from school attainment and parental education to circumvent reverse causation. Results show a strikingly similar pattern across the diverse set of countries in our sample. In fact, the instrumental-variable estimates are consistently larger than those found in standard least-squares estimations. The same is true in two "natural experiments," one of which exploits variation in skills from changes in compulsory-schooling laws across U.S. states. The other one identifies technologically induced variation in broadband Internet availability that gives rise to variation in ICT skills across German municipalities. Together, the results suggest that least-squares estimates may provide a lower bound of the true returns to skills in the labor market.

"This paper uses the 1970, 1980, and 1990 U.S. Censuses to study trends in educational attainment of immigrants relative to natives. Immigrants have become relatively less highly educated, but have become more highly educated in an absolute sense. The effects of changes in relative educational attainment between immigrants and natives on earnings are studied. Educational differences are found to explain more than half the observed wage gap between the two groups. The paper also allows for non-linearities in returns to education. Sheepskin effects influence earnings in different ways for natives and immigrants. Differences in returns to pre- and post-migration education also appear. The paper also finds evidence that immigrants crowd natives out of education, although the effects are stronger in secondary than in postsecondary education.", (excerpt)

"This paper provides new estimates of the impact of immigration and trade on the U.S. labor market.... We examine the relation between economic outcomes for native workers and immigrant flows to regional labor markets.... We...use the factor proportions approach to examine the contributions of immigration and trade to recent changes in U.S. educational wage differentials and attempt to provide a broader assessment of the impact of immigration on the incomes of U.S. natives." Comments and discussion by John DiNardo, John M. Abowd, and others are included (pp. 68-85)., (excerpt)

"The relationship between urbanization and level of income has been the subject of considerable theoretical debate and empirical study for many years. However, little recent work has been done to determine whether or not previous findings still hold, and there has been even less multi-country analysis to explore the degree of generality. Analysis of data for metropolitan areas in the United States from 1970 to 1990 indicates per capita income increases directly with population size. For states of the United states and 113 countries for 1960 and 1980 a strong positive relationship exists and holds temporally between level of per capita Gross Domestic Product and percent of the population that is urban.", (excerpt)

Family economic mobility has been a policy concern for decades, with interest heating up further since the 1990s, especially as the inequality of the family income distribution in the United States has grown. Rising intragenerational mobility could offset some of the effects of rising cross-sectional inequality on longer-term or lifetime inequality, while falling intragenerational mobility would exacerbate such effects. The positions families occupy in the income distribution and the degree to which they are stuck or able to move up (or slide down) over time are critical determinants of their current well-being and their children's prospects. Using data that track individual families' incomes during overlapping 10-year periods from 1978 to 1988 through 2004–2014, this paper documents trends in intragenerational family mobility and investigates the relationships of family characteristics to mobility and whether the importance of those factors has changed over time or differs for shorter or longer periods. The paper measures intragenerational mobility using both relative and dollar-denominated indicators. Family characteristics include family structure, educational attainment and work behavior of the family head and spouse (if present), and time-invariant characteristics of the family head, such as race. The analysis also examines within-period changes in the time-varying factors. [ABSTRACT FROM AUTHOR]

"This paper steps back from the current political debate [in the United States] over the social security trust fund and examines the more general question of how serious a macroeconomic problem aging is and how policy should respond to it. We focus primarily on issues relating to saving and capital accumulation. We do not consider the broader question of whether the current U.S. national saving rate is too high or too low, but focus on the effect of demographic changes on the optimal level of national saving. In addition, we consider the effects of demographic change on productivity growth and the optimal timing of tax collections. Our general conclusion is that demographic changes will improve American standards of living in the near future, but lower them slightly over the very long term. Other things being equal, the optimal policy response to recent and anticipated demographic changes is almost certainly a reduction rather than an increase in the national saving rate.", (excerpt)

This paper develops theory related to advertising, materialism, and life satisfaction by formally testing explanations related to the antecedents and consequences of materialism. Survey data were collected from seven major cities each in a different country (Australia, Bosnia/Herzegovina, Germany, Egypt, Korea, Turkey, and the USA) using a probability sample (cluster sampling method involving income stratification). The results showed that the extent to which advertising is perceived to be materialistic contributes to materialism. Materialism, in turn, leads to the frequent use of various standards of comparison in making judgments about standard of living. As judgments about standard of living increase, standard of living is evaluated more negatively. In turn, negative self-evaluations contribute significantly to dissatisfaction with life.

This paper adds to the sparse literature on the consequences of education-occupation mismatches. It examines the income penalty for field of education-occupation mismatches for men and women with higher education degrees in Sweden and reveals that the penalty for such mismatches is large for both men and women. For mismatched men the income penalty is about twice as large as that found for US men, whereas for women the penalty is of about the same size as for US women. Controlling for cognitive ability further establishes that the income penalty is not caused by a sorting by ability, at least for Swedish men. The income penalty for men decreases with work experience, which is an indication that education-specific skills and work experience are substitutes to some extent. (Contains 8 tables and 2 figures.)

Poverty is generally defined as income or expenditure insufficiency, but the economic condition of a household also depends on its real and financial asset holdings. This paper investigates measures of poverty that rely on indicators of household net worth. We review and assess two main approaches followed in the literature: income-net worth measures and asset-poverty. We provide fresh cross-national evidence based on data from the Luxembourg Wealth Study. (Contains 3 figures, 6 tables, and 16 footnotes.)

Most societies, rich and poor, seek to measure progress in reducing poverty and need, as indicated by material deprivation or social exclusion. The yardsticks used to assess progress and policy impact mainly include income-based poverty, but broader measures of poverty based on consumption, wealth, and material deprivation are also now coming into use. Both Europeans and Americans also have a strong interest in reducing income inequality: It is reported as a "serious problem" by two-thirds of survey respondents in the U.S. and over 90 percent of respondents in Europe. However, although both agree that income inequality is a social ill, there is far less consensus on how to attack the problem. Income inequality rose in most rich nations in the Organisation for Economic Cooperation and Development (OECD) over the 1990-2005 period, but by considering both tails of the income distribution, it can be seen that most of the rise in inequality was generated by increases at the top of the distribution or by the ratio of the 90th percentile income to the median income, and not by changes at the bottom or by the ratio of the 10th percentile to the median. Many analysts look at the Gini coefficient (the most popular single-parameter measure of the inequality in a country's income distribution) and see rising inequality if the Gini increases. They are, of course, technically correct. But a change in a single-parameter coefficient like the Gini does not show which part of the distribution changed, and different changes have different policy implications. If the rich pull away from the middle class, the policy implications are likely to be very different than if the poor fall farther behind the middle class. In this article, the author discusses new comparative measures of income, material deprivation, and well-being. (Contains 1 footnote.)

This paper describes a statistical study of the contribution of theories previously offered by economists to explain differences in the degree of urban decentralization in the U.S. The focus is on a relative comparison of the influence of auto reliance. A regression analysis reveals that a 10 percent reduction in the percentage of households owning one or more autos would reduce the square mile size of an urban area by only 0.5 percent and raise its population density by only 0.7 percent. Factors falling under the categories of "natural evolution" and "flight from blight" exert a far greater magnitude of influence. For instance, a 10 percent reduction in per capita income would reduce the square mile size of an urban area by 11.4 percent and raise its population density by 10.1 percent, while a 10 percent decrease in the percentage central place(s) population poor would reduce the square mile size of an urban area by 2.6 percent and raise its population density by 1.7 percent. A significant increase in urban decentralization will require more than just reduced auto reliance. (Contains 1 figure, 4 tables and 10 footnotes.)

This paper demonstrates the extent to which married women's labor supply elasticities have changed over the past quarter century. Estimates from March Current Population Survey data suggest that these elasticities have decreased substantially, by 60 percent for the hours wage elasticity (from 0.36 to 0.14), 70 percent for the hours income elasticity (from -0.053 to -0.015), 95 percent for the participation wage elasticity (from 0.66 to 0.03), and 60 percent for the participation income elasticity (from -0.13 to -0.05). Changing demographic characteristics explain little of the drop in these elasticities, suggesting that preferences toward work have changed across birth cohorts. (Contains 28 footnotes, 13 figures, and 3 tables.) [This article was produced by University of Wisconsin Press, Madison, WI.]

The article presents abstracts on the U.S. economic research which includes the implications of countervailing effects of market power and relationships in small business lending, examination on the welfare-maximizing monetary policy in micro-founded general equilibrium model of the economy and the theory of interpersonal income comparison using individual-level data on suicide deaths.

Policymakers at the federal and state level have begun to incorporate energy burden into equity goals and program evaluations, aiming to reduce energy burden below a high level of 6% for lower income households in the United States. Pairing an empirical household-level dataset spanning United States geographies together with modeled hourly energy demand curves, we show that rooftop solar reduces energy burden across a majority of adopters during our study period from a median of 3.3% to 2.6%. For low- and moderate-income adopters (at or below 80% and 120% of area median income, respectively), solar reduces median 2021 energy burden from 7.7% to 6.2%, and 4.1% to 3.3%, respectively. Importantly, solar reduces the rate of high or severe energy burden from 67% of all low-income households before adoption to 52% of households following adoption, and correspondingly from 21% to 13% for moderate-income households. Here, we show rooftop solar can support policy goals to reduce energy burden along with strategies such as weatherization and bill assistance. Modeled results show that rooftop solar reduced energy burden for most adopters in 2021 from a median of 3.3% to 2.6% with the average adopter seeing a 0.6 point ($691 annual) reduction in burden, accounting for costs, incentives, and savings. [ABSTRACT FROM AUTHOR]

A large and fast-growing number of studies across the social sciences use experiments to better understand the role of race in human interactions, particularly in the American context. Researchers often use names to signal the race of individuals portrayed in these experiments. However, those names might also signal other attributes, such as socioeconomic status (e.g., education and income) and citizenship. If they do, researchers would benefit greatly from pre-tested names with data on perceptions of these attributes; such data would permit researchers to draw correct inferences about the causal effect of race in their experiments. In this paper, we provide the largest dataset of validated name perceptions to date based on three different surveys conducted in the United States. In total, our data include over 44,170 name evaluations from 4,026 respondents for 600 names. In addition to respondent perceptions of race, income, education, and citizenship from names, our data also include respondent characteristics. Our data will be broadly helpful for researchers conducting experiments on the manifold ways in which race shapes American life., (© 2023. The Author(s).)

Contains 18 articles published in International Labour Review from 1921-1975 that discuss the International Labour Organisation, international labor movement and law, economics and the labor market, family security, full employment, population growth, industrial welfare, trade policy and employment growth, and income expectations and rural-urban migration. The last article gives a retrospective and a future view. (SK)

The article comments on a paper published within the issue, "Capital Formation and the Recent Productivity Slowdown," by Peter Clark. The author also discusses results from his own research in "Accounting for United States Economic Growth, 1929-1969," and applies it to Clark's paper. It is suggested that an abrupt rise in energy prices may have affected growth rates during the mid-1970s. The author also looks at a similar analysis made by John Kendrick, who focuses on the U.S. postwar period of 1948-1966.