Labor Income Indices Designed for Use in Contracts Promoting Income Risk Management

Robert Shiller and Ryan Schneider

No 5254, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Labor income indices are created for groupings of individuals, using data from the Panel Study of Income Dynamics. People are grouped by a clustering algorithm based on an estimated transition matrix between jobs, by education level, and by skill category. The groupings are defined so that relatively few people move between them. For each of the groupings, we generate a labor income index using a hedonic repeated-measures regression methodology. Similarities between pairs of indices and between indices and individual labor incomes are described. It is argued that indices like those presented here might someday be used in settlement formulae in contracts promoting income risk management.

JEL-codes: J31 (search for similar items in EconPapers)
Date: 1995-09
Note: EFG
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Citations: View citations in EconPapers (2)

Published as Shiller, Robert J & Schneider, Ryan, 1998. "Labor Income Indices Designed for Use in Contracts Promoting Income Risk Management," Review of Income and Wealth, Blackwell Publishing, vol. 44(2), pages 163-82, June.

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Related works:
Journal Article: LABOR INCOME INDICES DESIGNED FOR USE IN CONTRACTS PROMOTING INCOME RISK MANAGEMENT (1998)
Working Paper: Labor Income Indices Designed for Use in Contracts Promoting Income Risk Management (1995)
Working Paper: Labor Income Indices Designed for Use in Contracts Promoting Income Risk Management (1995)
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