Public concern about economic insecurity has increased markedly over the last several decades. This paper assesses the extent to which this increase in concern has in fact coincided with increased risk to family income. Using data from the Panel Study of Income Dynamics, we examine changes in two indicators of income risk-the short-term variability (volatility) of family income, and the association between large income drops and destabilizing life events-over the 1970-2004 period. Our findings support the hypothesis that income risk has increased: the volatility of family income nearly doubled over the period, and destabilizing events became increasingly associated with large income drops.

The Census Bureau’s official poverty measure no longer reflects the true resources or needs of adults age 65 and older. Recent consumption data show that older adults generally require more to cover their basic needs and economic data show that older adults have more resources than are reflected in the official poverty measure. This paper shows the sensitivity of poverty rates for older adults to alternative measures of consumption needs and income resources. The alternative measures all show that number of older adults living in poverty is greater than the official measure indicates.

Older men who expect high health care costs for themselves or their spouses after age 65 retire about 13 months later than those who expect low costs. The difference for women is 12 months. For those receiving health insurance from their employers, continued work reduces the risk of high out-of-pocket health care costs. Working longer also increases retirement incomes, making health care costs more affordable.

Increasing older people's employment rates could reduce the economic pressures of an aging population, and many older adults say they want to delay retirement. Yet, numerous public policies and private practices continue to encourage early retirement. The Urban Institute, with support from the Alfred P. Sloan Foundation, sponsored an October 2007 roundtable to examine the value of older adults' work. Researchers, practitioners, employers, and policymakers discussed the potential supply of and demand for older workers, the benefits of working longer, barriers to continued employment, and policy solutions to encourage work at older ages. This document summarizes the issues and discussion.

In 2004, 36.6 million people--or 12.6 percent of the U.S. population--were poor. The "poverty gap"--the amount of additional income required to remove all Americans from poverty--was $105.6 billion. Poverty rates were highest for African Americans, Hispanics, women, and persons under 25. Without government benefits, 61 million people would be poor. Social Security and other social insurance programs remove 21 million people from poverty. Means tested programs remove 3 million people from poverty. If food and housing assistance were counted as income for poverty purposes, an additional 7.6 million people would be counted as not poor.

State and local revenues have been relatively stable over the last 30 years, growing from 13.5 percent of GDP in 1972 to 16.3 percent in 2005. However, as shown in the table, the composition of revenues has changed, with property taxes declining from 25.6 percent of revenues to only 16.6 percent. Much of this decline occurred in the 1970s.

Growing fiscal pressures and increasing life expectancy have prompted calls to raise retirement ages. Some fear this change might harm long-career, lower-wage workers. Tying retirement benefit eligibility to years of service might protect low-wage workers who start their careers early. But higher disability rates and greater employment volatility could offset lower-wage workers’ early labor force starts. Using survey data matched to administrative records, we describe how work histories vary by gender, education, and other characteristics. We find that years of service are not likely to effectively protect the lowest-wage workers, as those with the least education also work the least.

Children's mobility outcomes are a function of not only their parents' characteristics and resources, but also of the way parents transmit those characteristics and resources across generations. This review assesses the literature on the effects of family structure, resources, and childrearing styles on children's economic outcomes. Particular attention is paid to the challenge of disentangling the impacts of these determinants, which are often highly correlated: high socio-economic status individuals are better able to address their children’s material needs, but are also more likely to form stable, two-parent families and may even tend to employ more effective parenting strategies. (Review 3 of 11.)

While earnings are the primary determinant of income in most households, family welfare and consumption are often more related to wealth held either as financial assets or real assets. Because a substantial fraction of the U.S. wealth stock is passed from one generation to the next through inter-vivos transfers and bequests, wealth can have large and important effects on absolute and relative mobility both across and within generations. This review examines the pathways through which wealth influences economic mobility, with an emphasis on its effects on mediating factors like educational investment and neighborhood choice. (Review 11 of 11.)

Education policy is important to the discussion of mobility because it serves both as an end and a means to an end in eliminating inequalities. In addition to fostering mobility among those directly benefited by it, the children of beneficiaries may indirectly benefit as well. Thus, properly targeted education programs may enhance outcomes in both present and future generations. This review summarizes the complex and well-developed literature on the interplay between education and inter- and intragenerational economic mobility. (Review 2 of 11.)