This paper employs four measures of downward income mobility and 1984–1986 PSID data to examine the extent and possible causes of downward mobility. Despite modest economic growth during this period, a substantial number of Americans experienced downward income mobility, roughly 5% to 20%. The majority of the downwardly mobile initially lived with a nonelderly, Caucasian, male, less-educated, working household head. Logit analysis indicates that the following factors significantly increase the odds of downward income mobility: Male headship; minority headship; family dissolution; nest-leaving; and having a head who works in mining, construction, manufacturing, transportation, trade, or farming. The following factors significantly lower the odds of downward income mobility: Retaining the same household head; having a college-educated head; having a head who works in a professional, technical, or operative occupation; and having a head in the finance, insurance, and real estate industry.
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