Income Spectrum Research Articles

Household Cash Balances during COVID-19: A Distributional Perspective

Months after the declaration of national emergency on March 13, 2020, the COVID-19 pandemic continues to impact the economy and household finances in dramatic and unprecedented ways. Household spending, which initially fell sharply during the shutdowns in March and April (Cox et al, 2020), has slowly recovered. The most financially vulnerable families have been impacted the most, with lower-income earners and Black and Latinx workers facing the highest job losses. The government responded with the massive CARES Act to bolster income and economic activity through stimulus checks, expanded unemployment benefits, and the Payroll Protection Program. Prior research has demonstrated the importance of liquid savings for maintaining financial resilience during times of uncertainty (Farrell et al, 2019; Farrell et al, 2020). What has been the net effect of these various forces on families’ liquid savings? Aggregate statistics suggest an increase in the deposits of households and nonprofits as well as commercial banks since March, 2020, but what does the picture look like for the median household and, in particular, low-income households? We analyze trends in checking account balances between 2019 and October 2020 to understand how the pandemic and these government interventions have affected household financial outcomes across the income spectrum. As a highly liquid asset, checking accounts often serve as a family’s first line of defense to shield against financial shocks. It is also important to provide a distributional, household-centric view of account balance trends, which might be masked by aggregate public statistics on deposit levels. We address these questions via a unique data asset based on the daily balances of Chase personal checking accounts. The data asset follows the account balances of 1.8 million families across the U.S. who have been active checking account users since December 2018.

The retirement security of employee owners in ESOPs in S Corporations

Purpose American workers at nearly every level of the income spectrum are not and often cannot to save properly to be secure in retirement. Addressing this challenge will require a comprehensive policy discussion by both federal and state policymakers. Employee stock ownership plans (ESOPs) are the primary form of employee ownership, and for reasons explored in this report, companies organized as S corporations are especially likely to be fully ESOP-owned. The purpose of the paper is to explore the role played by employee ownership in retirement security overall and across wage and age groups. Design/methodology/approach The findings described in this report are derived from a survey of privately held S corporation ESOPs. The report compares these findings to nationally representative survey data. The online survey, conducted between January and March 2018, received responses from 39 companies that supplied the median and average account balances of a total of 61,020 plan participants. It breaks new ground by presenting retirement account balances by wage and age categories (e.g. 20,000 lower-wage workers and 8,000 employees nearing retirement). Findings ESOP participants represented in this survey have more than twice the average total retirement balance of Americans nationally: $170,326 vs $80,339. This is not just a function of higher wage ESOP employees driving the average up. ESOP employees making less than $25,000 a year also have on average more than double the retirement savings ($55,526) compared to similar workers nationally ($22,447). Nearly all of the respondent companies (97 percent) offer at least one other retirement plan in addition to the ESOP. By contrast, 32 percent of all workers in the US workforce as a whole do not have access to any retirement benefits at work, and 49 percent of all workers are not participating in the plan that is available to them. Additionally, these S corporation ESOP companies provide an array of benefits at levels solidly higher than firms overall where comparison data exist. Certainly, these benefits make their own contribution to retirement security because workers are less likely to have to dip into savings for critical investments or expenses, such as tuition, to advance their career or unexpected medical expenses. Among the surveyed S ESOPs, workers nearing retirement have on average a median account balance of $147,522 in their ESOP plus $98,974 in a non-ESOP plan(s). By contrast, more than one-third (35 percent) of all workers nearing retirement have neither retirement savings nor a defined benefit pension. This percentage rises to 50 percent among low-income workers in this age bracket. As such, national data place the median account balance of all US workers aged 55–64 years at zero. Even among workers who have retirement accounts, the median balance nationally is $100,000. A typical millennial worker (25–34 years old) at a surveyed S ESOP company has a median ESOP account balance of $22,588 and a median balance of $11,239 in a non-ESOP account. In contrast, the median savings of US millennials is zero. Among the surveyed S ESOPs, lower-wage employees ($10.00–$12.85 per hour) typically have median account balances in their ESOP of $4,381 and in a non- ESOP plan of $2,149. In contrast, nationally, 56 percent of workers in this category do not have access to any retirement benefits at work. This translates into a median savings for this group of zero. Finally, ESOPs are clearly associated with reduced turnover. Respondent companies report quit and separation rates that are more than two times lower than national rates. Originality/value This is the first such study of its kind.

Living in the Community With Dementia: Who Receives Paid Care?

Paid caregivers (eg, home health aides and personal care attendants) provide hands-on care that helps individuals with dementia live in the community. This study (a) characterizes paid caregiving among community-dwelling individuals with dementia and (b) identifies factors associated with receipt of paid care. Cross-sectional analysis. The 2015 National Health and Aging Trends Study (NHATS), a nationally representative study of Medicare recipients aged 65 years and older. Community-dwelling individuals with dementia (n = 899). Paid and family caregiving support was determined by participant or proxy report of help received with functional tasks. Multivariable logistic regression was used to examine factors associated with receipt of paid care. NHATS population sampling weights were used to produce national paid caregiving prevalence estimates. Only 25.5% of community-dwelling individuals with dementia received paid care, and 10.8% received 20 hours or more of paid care per week. For those who received it, paid care accounted for approximately half of the 83 total caregiving hours (paid and family) that they received each week. Among the subgroup of individuals with advanced dementia (those with impairment in dressing, bathing, toileting, and managing medications and finances), nearly half (48.3%) received paid care. Multivariable analysis, adjusting for sociodemographic, family caregiving support, functional, and clinical characteristics, found that the odds of receiving paid care were higher among men (odds ratio [OR] = 1.91; 95% confidence interval [CI] = 1.24-2.95), the unmarried (OR = 2.20; 95% CI = 1.31-3.70), those with Medicaid (OR = 2.16; 95% CI = 1.27-3.66), and those requiring more help with activities of daily living (ADLs) (OR = 1.32; 95% CI = 1.18-1.48) and instrumental ADLs (OR = 1.29; 95% CI = 1.14-1.46). New ways of making paid caregiving more accessible throughout the income spectrum are required to support family caregivers and respect the preferences of individuals with dementia to remain living in the community. J Am Geriatr Soc 68:186-191, 2019.

Weathering Volatility 2.0: A Monthly Stress Test to Guide Savings

Inconsistent or unpredictable swings in income and expenses make it difficult for families to plan spending, pay down debt, or determine how much to save. In this report, the JPMorgan Chase Institute uses administrative banking data to study the nature and trends of month-to-month fluctuations in income and spending and the levels of cash buffer families need to weather adverse income and spending shocks. We analyze monthly take-home income, spending, and account balances of over six million families’ Chase checking accounts between 2013 and 2018. We measure volatility with the Coefficient of Variation (CV) of monthly total take-home income. In addition to absolute volatility, we also measure income and spending spikes and dips separately. We examine the extent to which levels of volatility differ for sub-populations across the income spectrum, age, gender, and cash buffer. Finally, we empirically estimate the minimum levels of cash buffer families need to weather adverse shocks to their savings including income dips and spending spikes. We find that month-to-month income volatility has remained relatively constant over the past six years from 2013 to 2018. The level of income volatility remains high with those at the median level experiencing a 36 percent change in income month-to-month. Similarly, month-to-month spending volatility has also been flat during this period, with its level 15 percent lower than that of income but still high. In addition, families experience large income swings, including spikes and dips, in five months out of a year, where income spikes are twice as likely as dips and most common in March and December. Families with the most volatile incomes experience larger but not more frequent swings than those with less volatile incomes. There is wide variation in the levels of income volatility families experience and is greatest amongst the young and those in the highest income quintile. However, low-income families experience larger and more frequent income dips, an indication of downside risks. Finally, we find that families need roughly six weeks of take-home income in liquid assets to weather a typical and simultaneous income dip and expenditure spike. More than 60 percent of families lack a sufficient buffer to do so. In follow up work underway, we examine the impact of the 2019 January government shutdown on employees’ consumption and savings pattern as a case study of negative income shock. Altogether, our results offer important empirical guidance for the minimum levels of liquid buffer families need and implications for strategies to improve families’ financial health.

Optimization of MAXED input parameters with applications to the unfolding of neutron diagnostics data from the Joint European Torus.

Organic NE213 liquid scintillator neutron detectors are commonly used at accelerator facilities for neutron beam diagnostics. In recent years, they have also been installed at nuclear fusion facilities to measure the neutron energy spectra from Deuterium (D) and Deuterium-Tritium plasmas, e.g., at the ASDEX Upgrade (Garching, Germany) and at the Joint European Torus (JET, Culham, UK). The NE213 equivalent scintillating material (now BC501A) of the detector is sensitive to neutron and gamma radiation, so pulse discrimination techniques are applied in order to obtain the measured neutron pulse height spectrum (PHS). If the neutron detector is stable, controlled, and well-characterized (i.e., its response function to incoming neutrons of known energy is determined with high accuracy), it can be used as a neutron spectrometer. The measured PHS can then be analyzed using standard techniques such as unfolding to determine the incoming neutron energy spectrum. This article focuses on the unfolding of neutron data measured in D plasma experiments at JET by a compact broadband neutron spectrometer using the maximum entropy unfolding code MAXED. A general method for optimizing MAXED input parameters is described and applied to the measured PHS to diagnose the effects of the auxiliary heating of JET D plasma on the neutron energy spectra.

Synergies between space telescopes in the photometric characterization of the atmospheres of Hot Jupiters

Previous generation of instruments have the opportunity to discover thousands of extra-solar planets and more will come with the current and future planet-search missions. In order to go one step further in the characterization of exoplanets, in this paper we describe a way to compare the photometric observation of Hot Jupiters done with space telescopes such as HST, CHEOPS, TESS, PLATO, and JWST and give the first-hand characterization on their atmospheres. We analyze a set of planetary systems hosting a Hot Jupiter for which an atmospheric template is available in the literature. For each system, we simulate the transit light curves observed by different instruments, convolving the incoming spectrum with the corresponding instrumental throughput. For each instrument, we thus measure the expected transit depth and estimate the associated uncertainty. Finally, we compare the transit depths as seen by the selected instruments and we quantify the effect of the planetary atmosphere on multi-band transit photometry. We also analyze a set of simulated scenarios with different stellar magnitudes, activity levels, transit durations and atmospheric templates to find the best cases for this kind of observational approach. We find in general that current and especially future space telescopes provide enough photometric precision to detect significant differences between the transit depths at different wavelengths. In particular, we find that the chromatic effect due to the atmosphere of the Hot Jupiters is maximized at later spectral types and that the effect of stellar activity is smaller than the measurement uncertainties.

Fast detection and DOA estimation of the unknown wideband signal sources

SummaryThe direction of arrival (DOA) estimation analysis requires prior knowledge of frequency‐related information of the incident wideband signals, eg, center frequency and bandwidth, which are not available in many cases. This research is based on applications where DOA estimation of the wideband signal source is unknown, eg, in astronomy and unauthorized transmissions. Therefore, this paper has two major contributions. The first contribution is to identify the frequency spectrum of the wideband signals transmitted from an unknown source. The method use edge detection prestage to identify the frequency spectrum of the received signal. The second contribution is to estimate the DOA of the wideband signal at higher accuracy while keeping a minimum computational cost. The estimation of the DOAs was analyzed by measuring the orthogonal relationship between the signal and the noise subspaces of multiple frequency components of the sources. The introduced method utilizes subband as a reference frequency based on the extracted frequency‐related information rather than examining the complete incoming signal spectrum and exploits the spatial information of a few subbands. The introduced algorithm is implemented based on the well‐known method, test of orthogonality of projected subspaces (TOPS). Tests are conducted on a range of wideband signals with extreme values of signal‐to‐noise ratio (SNR). Considerable performance improvement is obtained.

NIR spectrum estimation utilizing a photonic crystal distributed passband-type multiple filter array.

A near-infrared (NIR) spectral sensor consisting of a 25-channel dielectric multi-patterned filter array (MFA) and CCD is proposed and fabricated. The MFA consists of a wavy dielectric multilayer with a gradient layer profile on a silica substrate with surface grating. The incoming NIR spectrum is predicted by Wiener estimation utilizing the MFA's spectral responses and a set of training spectral data. Estimation performance is evaluated under various optical shot-noise conditions.

Albedo Estimation of Finite-Sized Concrete Specimens

Abstract Albedo in the context of the Urban Heat Island contributes to the environmental impact of a pavement. Measuring the pavement albedo is difficult as it depends on the size of the specimen, background interference, and variations in the incoming solar spectrum. For this study, the albedo was determined for a 1-m2 concrete slab cast with white cement containing titanium dioxide nanoparticles. The size of the exposed surface of the slab was varied using black paper. To calculate the albedo of these nonstandard specimen sizes, a new testing technique was proposed that uses an albedometer and various geometric conditions, including the exposed slab surface and measurement height. The albedo of the finite-sized concrete specimen was found to range from 0.50 to 0.55, depending on the number of unknowns assumed, with the most reasonable estimate of 0.54. The measured slab albedo from the new method was also verified using a laboratory spectrophotometer. With this proposed methodology to account for background surfaces, the albedo of laboratory-sized concrete specimens of any shape can now be easily measured at various test site locations.

Positional deprivation and support for radical right and radical left parties*

We explore how support for radical parties of both the left and right may be shaped by what we call “positional deprivation,” where growth in income of individuals at a given point in the income distribution is outpaced by income growth elsewhere in that distribution. We argue that positional deprivation captures the combination of over-time and relative misfortune that can be expected to distinctly spur support for radical left and right parties. We explore this possibility by matching new measures of positional deprivation to individual-level survey data on party preferences in 20 European countries from 2002 to 2014. We find that positional deprivation is robustly correlated with supporting radical populist parties. First, positional deprivation generally, measured as average income growth across deciles of a country’s income distribution minus a respondent’s own decile’s growth, is associated with respondents’ retreat from mainstream parties and with support for both radical right and, particularly, radical left parties. Second, positional deprivation relative to the highest and the lowest ends of the income spectrum play out differently for radical-right and for radical-left support. A respondent’s positional deprivation relative to the wealthiest decile’s growth in his or her country tends to spur support for radical left but not radical right parties. In contrast, positional deprivation relative to the poorest decile’s growth in a respondent’s country tends to spur support for radical right but not left parties. The results suggest that the combination of over-time and relative economic misfortune may be key to how economic experience shapes radical backlash of the left and right.

Calibration of the Suanni small-angle neutron scattering instrument at the China Mianyang Research Reactor

A series of calibration measurements have been performed on Suanni – the first small-angle neutron scattering spectrometer entering into routine user operation in China – aiming to characterize instrument performance and to provide a reference for user experiments. Various calibration standards were used to verify the precise association of the scattering intensity I with the scattering vector magnitude q at short and medium sample–detector distances. The measurements recorded for silver behenate powder revealed a slight shift of the neutron wavelength (λ) at the sample position as compared to the nominal λ calculated by the selector constant. The deviation was more significant with λ > 0.8 nm owing to the shape of the incoming neutron spectrum incident on the selector. The measured dead time for the entire detection system is 2.7 µs, as determined by measurements with varying fluxes. A protonated/deuterated polystyrene blend was employed as the primary standard to calibrate the secondary standard H2O. The instrument covers an effective q range between 0.013 and 5 nm−1, as demonstrated by scattering curves obtained from a monodisperse poly(methyl methacrylate) nanoparticle suspension and a glassy carbon plate.

Land, urban form, and politics: A study on Dubai's housing landscape and rental affordability

There is a general perception that Dubai is built for the well-off. The construction of mega developments feeds a longstanding narrative that Dubai is solely a luxurious place. This study assesses this portrayal of Dubai and explores Dubai's residential landscape in terms of morphology and affordability. In particular, we ask: What are the different housing patterns prevailing in Dubai's built landscape? What are the major driving factors that influenced Dubai's housing transformation? How affordable is Dubai to its residents? Does Dubai's built landscape accommodate a large spectrum of income classes?The study argues that to fully assess the affordability of a city's housing, it's necessary to understand its spatial forms, morphogenesis, and the forces that shaped these patterns. Taking Dubai as a case, the study uses geospatial mapping to reveal nine distinct residential patterns in the city's history. The identified patterns are presented under six thematic periods stretching from 1900 to 2016 to highlight the contributing forces that shaped Dubai's housing landscape. Results expand the terms of discussions of affordable housing issues to address concerns related to authoritarian land use control and its impact on housing forms. Findings reveal that Dubai's land use policy creates spatial and housing affordability challenges. The state housing policy of providing large plots and exclusive suburbs for natives and the government's partnership with the private sector to brand Dubai through projects for the well-off have created a formidable housing challenge for the middle class. One major challenge is the lack of sufficient affordable housing units for the middle-class population; rental figures for this group are at crisis point. Only 23% of total housing units, which corresponds to a mere 7% of the total housing floor area in Dubai, are affordable for this group. To eradicate these ills of housing affordability, the planning profession in Dubai must derive practices from a number of internationally recognized planning and rental control policies.

Observations by incoherent scatter radar of related D- and F-region structuring at very high latitude

Properties and associations of F- and D-region ionospheric structures during weak electron precipitation at very high latitude are investigated using the Longyearbyen incoherent scatter radar. The radio absorption deduced from the electron density observations revealed evidence of a persistent low-altitude absorption layer peaking at 80-85 km. Inversion of the electron density profile to give an estimate of the incoming energetic electron spectrum suggests that its source may be the solar wind. Strong similarities are seen between variations in the F and D regions which suggest that the electron flux reaching the D-region is being modulated in energy by the variations of electron density in the F-region.

In-fiber high-speed recognition of incoherent-light broadband energy spectrum patterns.

A fiber-optic system is proposed and experimentally demonstrated for real-time, on-the-fly identification of an incoherent-light energy spectrum pattern based on dispersion-induced time-spectrum convolution. In the proposed system, the incoming frequency-spectrum patterns to be identified are modulated by a time-mapped version of the target intensity profile. Following propagation through a suitable fiber-optic dispersive medium, the measured output temporal waveform provides a correlation of the incoming spectra with the programmed target pattern. This enables direct, real-time detection of the matching energy spectra, without any further numerical post-processing. We experimentally demonstrate successful recognition of a target infrared spectral pattern, extending over a bandwidth of 1.5THz with a resolution of ∼12 GHz, with sub-megahertz update rates. A path for further performance improvements is also suggested.

Living With Inequality: Neighborhood Income Diversity and Perceptions of the Income Gap

This article explores whether the places where people live—and specifically the diversity of incomes where people live—influence views about income inequality. Using a unique survey of New York City that contains geographic identifiers and questions about attitudes toward inequality, coupled with a rich array of Census data, we assess the degree to which the income diversity within spatially customized neighborhood boundaries influences beliefs about inequality. We find consistent evidence that attitudes about inequality are influenced by the places where people live—those who are exposed to more income diversity near their homes perceive larger gaps between the rich and everybody else, and are more likely to believe that the gap should be smaller. Moreover, this effect appears to be especially pronounced among those with lower educational attainment and at either end of the income spectrum.

WAVE OVERTOPPING AT MALECÃ’N TRADICIONAL, LA HABANA, CUBA

With the aim of redesigning the geometry of the Malecòn, a vertical face seawall protecting the northern waterfront of the city of La Habana, a wide experimental campaign was carried out. The latter was performed in the frame of a collaboration between the Government of the isle of Cuba and the CUGRI consortium, an Italian institution which joins the Universities of Salerno and Napoli “Federico II”. The different solutions investigated allowed both to detect the best solution for reducing the overtopping and to assess the role of wave setup and low frequency components of the incoming wave spectrum on the predictions of the mean overtopping rate. The stability of two nearshore structures designed to protect the seawall has also been assessed.

What Factors Drive Inequalities in Carbon Tax Incidence? Decomposing Socioeconomic Inequalities in Carbon Tax Incidence in Ireland

Carbon taxes increase the cost of necessary household energy expenditures. In many developed countries, carbon taxes are regressive as they comprise a greater proportion of a poorer household's income. Certain socioeconomic groups are more negatively affected by these impacts than others. While inequality of incidence by income group has received great attention in the literature, a gap exists to quantify the inequality associated with socioeconomic characteristics. This information is policy-relevant as it may inform the most effective means to offset negative welfare impacts through changes to taxes and/or social transfers. This paper provides this contribution. First, the inequality of carbon tax incidence across the income spectrum is quantified using the concentration index methodology. A subsequent multivariate decomposition quantifies the contribution each socioeconomic factor makes towards this inequality of incidence. This is carried out for electricity, motor fuel and all other home fuels to elicit variation of socioeconomic incidence by source. While income contributes a great deal towards inequality of incidence for other home fuels, other socioeconomic characteristics are the primary determinants of electricity and motor fuel-related carbon tax incidence. The relative importance of each characteristic in determining regressive impacts is quantified and this varies by carbon tax source.

Income-related inequalities in diseases and health conditions over the business cycle

How business cycles affect income-related distribution of diseases and health disorders is largely unknown. We examine how the prevalence of thirty diseases and health conditions is distributed across the income spectrum using survey data collected in Iceland in 2007, 2009 and 2012. Thus, we are able to take advantage of the unusually sharp changes in economic conditions in Iceland during the Great Recession initiated in 2008 and the partial recovery that had already taken place by 2012 to analyze how income-related health inequality changed across time periods that can be described as a boom, crisis and recovery. The concentration curve and the concentration index are calculated for each disease, both overall and by gender. In all cases, we find a considerable income-related health inequality favoring higher income individuals, with a slight increase over the study period. Between 2007 and 2009, our results indicate increased inequality for women but decreased inequality for men. Between 2009 and 2012 on the contrary, men’s inequality increases but women’s decreases. The overarching result is thus that the economic hardship of the crisis temporarily increased female income-related health inequality, but decreased that of men.

Humanistic Management and Living Wages: a Case of Compelling Connections?

The balance between employee pay and human thriving remains theoretically and empirically under-explored at the lower-end of the wage and income spectrum. Poverty Trap theory and the Law of Diminishing Returns offer seemingly contradictory predictions of the relationship between thriving and wages. An exploratory survey of low- and middle-income earners from a range of occupations was used to test these competing possibilities by relating hourly wage rates to thriving as measured by sense of (i) work happiness (job satisfaction, empowerment, and pride), (ii) well-being (mental and physical health, participation in community life, life satisfaction); and (iii) wage fairness (compared to upper management, reciprocity for the job). Linkages between pay and human capabilities (i)- (iii) were statistically significant, and non-linear. Fairness (reciprocity) had the closest association with hourly wages and household income, suggesting a mediating role between pay and (i)-(ii). Increments in hourly pay yielded diminishing returns, whilst increments in household income only yielded clear gains, on feelings of pay justice, once the current campaigned-for living wage figure was breached. Poverty Traps and Diminishing Returns may each play a part in the link between on the one hand decent wages and income, and on the other hand eradication of working poverty.

What Affects Happiness Inequality? Evidence from Japan

This paper examines the determinants of happiness inequality in Japan using unique data from the “Preference Parameters Study” of Osaka University, a nationally representative survey conducted in Japan. By estimating Recentered Influence Function regressions, we find that household income has a negative and significant effect on happiness inequality, as found for other advanced economies, though people’s perception of their relative standing in the income spectrum also matters for the dispersion of happiness. Moreover, the regression results show that the insecurity faced by people about their jobs and life after retirement is also significantly associated with the widening of happiness inequality. Such findings are cause for grave concern given that the share of irregular jobs, which tend to be low paid and insecure, in total employment significantly increased in Japan during the Lost Two Decades and that this increasing trend has not yet been reversed.