Research by Author & Topic

Publications by Robert I. Lerman on Other Data

Using data from the Federal Reserve Board's Surveys of Consumer Finances (SCFs), we follow one segment of a cohort over its life cycle—married couples as the husband ages from 36–44 in 1989 to 51–59 in 2004. We find that middle-income and lower-middle-income married-couple households experienced modest income growth but rapid growth in net worth. Overall, the evidence documents significant gains in income and wealth as married couples aged from their late 30s to their 50s.

Between 1989 and 2004, middle-income parents experienced moderate income growth, but only married parents have gained net worth—a significant fact given that the share of households headed by an unmarried parent increased from 26 to 33 percent over the same period. Using data from the Federal Reserve Board's Surveys of Consumer Finances, income measures alone show that middle-income unmarried parents gained some ground relative to married parents. However, trends in net worth—the value of what households own minus the value of what they owe—diverged by marital status, demonstrating the importance of looking beyond income data.

The federal Earned Income Tax Credit (EITC) and the Food Stamp program (FSP) are the largest means-tested transfer programs for low-income working parents in the United States. This study examines how these two programs interact, particularly the potential impact of the EITC on participation in the FSP during the latter half of the 1990s. Although EITC payments do not reduce the potential size of a household's food stamp allotment under FSP rules, EITC adds to a household's resources and thus could affect a household's willingness to participate in the FSP. The paper tests this hypothesis with monthly data from the Survey of Income and Program Participation for 1996 through 1999. Although the findings are mixed, there is evidence of a negative impact of EITC on FSP participation.

Bob Lerman, head of the Institute's Center on Labor and Social Policy, and Institute economist John Foster-Bey discuss major trends and forces shaping American cities in the 21st Century. With Fred Seigel of Cooper Union in New York. Hosted by Kojo Nnamdi.