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Average hourly and weekly wage rate, and median hourly and weekly wage rate by North American Industry Classification System (NAICS), type of work, gender, and age group.

This dataset contains replication files for "The Fading American Dream: Trends in Absolute Income Mobility Since 1940" by Raj Chetty, David Grusky, Maximilian Hell, Nathaniel Hendren, Robert Manduca, and Jimmy Narang. For more information, see https://opportunityinsights.org/paper/the-fading-american-dream/. A summary of the related publication follows. One of the defining features of the “American Dream” is the ideal that children have a higher standard of living than their parents. We assess whether the U.S. is living up to this ideal by estimating rates of “absolute income mobility” – the fraction of children who earn more than their parents – since 1940. We measure absolute mobility by comparing children’s household incomes at age 30 (adjusted for inflation using the Consumer Price Index) with their parents’ household incomes at age 30. We find that rates of absolute mobility have fallen from approximately 90% for children born in 1940 to 50% for children born in the 1980s. Absolute income mobility has fallen across the entire income distribution, with the largest declines for families in the middle class. These findings are unaffected by using alternative price indices to adjust for inflation, accounting for taxes and transfers, measuring income at later ages, and adjusting for changes in household size. Absolute mobility fell in all 50 states, although the rate of decline varied, with the largest declines concentrated in states in the industrial Midwest, such as Michigan and Illinois. The decline in absolute mobility is especially steep – from 95% for children born in 1940 to 41% for children born in 1984 – when we compare the sons’ earnings to their fathers’ earnings. Why have rates of upward income mobility fallen so sharply over the past half-century? There have been two important trends that have affected the incomes of children born in the 1980s relative to those born in the 1940s and 1950s: lower Gross Domestic Product (GDP) growth rates and greater inequality in the distribution of growth. We find that most of the decline in absolute mobility is driven by the more unequal distribution of economic growth rather than the slowdown in aggregate growth rates. When we simulate an economy that restores GDP growth to the levels experienced in the 1940s and 1950s but distributes that growth across income groups as it is distributed today, absolute mobility only increases to 62%. In contrast, maintaining GDP at its current level but distributing it more broadly across income groups – at it was distributed for children born in the 1940s – would increase absolute mobility to 80%, thereby reversing more than two-thirds of the decline in absolute mobility. These findings show that higher growth rates alone are insufficient to restore absolute mobility to the levels experienced in mid-century America. Under the current distribution of GDP, we would need real GDP growth rates above 6% per year to return to rates of absolute mobility in the 1940s. Intuitively, because a large fraction of GDP goes to a small fraction of high-income households today, higher GDP growth does not substantially increase the number of children who earn more than their parents. Of course, this does not mean that GDP growth does not matter: changing the distribution of growth naturally has smaller effects on absolute mobility when there is very little growth to be distributed. The key point is that increasing absolute mobility substantially would require more broad-based economic growth. We conclude that absolute mobility has declined sharply in America over the past half-century primarily because of the growth in inequality. If one wants to revive the “American Dream” of high rates of absolute mobility, one must have an interest in growth that is shared more broadly across the income distribution.

Abstract

The Consumer price surveys primarily provide the following: Data on CPI in Palestine covering the West Bank, Gaza Strip and Jerusalem J1 for major and sub groups of expenditure. Statistics needed for decision-makers, planners and those who are interested in the national economy. Contribution to the preparation of quarterly and annual national accounts data.

Consumer Prices and indices are used for a wide range of purposes, the most important of which are as follows: Adjustment of wages, government subsidies and social security benefits to compensate in part or in full for the changes in living costs. To provide an index to measure the price inflation of the entire household sector, which is used to eliminate the inflation impact of the components of the final consumption expenditure of households in national accounts and to dispose of the impact of price changes from income and national groups. Price index numbers are widely used to measure inflation rates and economic recession. Price indices are used by the public as a guide for the family with regard to its budget and its constituent items. Price indices are used to monitor changes in the prices of the goods traded in the market and the consequent position of price trends, market conditions and living costs. However, the price index does not reflect other factors affecting the cost of living, e.g. the quality and quantity of purchased goods. Therefore, it is only one of many indicators used to assess living costs. It is used as a direct method to identify the purchasing power of money, where the purchasing power of money is inversely proportional to the price index.

Geographic coverage

Palestine West Bank Gaza Strip Jerusalem

Analysis unit

The target population for the CPI survey is the shops and retail markets such as grocery stores, supermarkets, clothing shops, restaurants, public service institutions, private schools and doctors.

Universe

The target population for the CPI survey is the shops and retail markets such as grocery stores, supermarkets, clothing shops, restaurants, public service institutions, private schools and doctors.

Kind of data

Sample survey data [ssd]

Sampling procedure

A non-probability purposive sample of sources from which the prices of different goods and services are collected was updated based on the establishment census 2017, in a manner that achieves full coverage of all goods and services that fall within the Palestinian consumer system. These sources were selected based on the availability of the goods within them. It is worth mentioning that the sample of sources was selected from the main cities inside Palestine: Jenin, Tulkarm, Nablus, Qalqiliya, Ramallah, Al-Bireh, Jericho, Jerusalem, Bethlehem, Hebron, Gaza, Jabalia, Dier Al-Balah, Nusseirat, Khan Yunis and Rafah. The selection of these sources was considered to be representative of the variation that can occur in the prices collected from the various sources. The number of goods and services included in the CPI is approximately 730 commodities, whose prices were collected from 3,200 sources. (COICOP) classification is used for consumer data as recommended by the United Nations System of National Accounts (SNA-2008).

Sampling deviation

Not apply

Mode of data collection

Computer Assisted Personal Interview [capi]

Research instrument

A tablet-supported electronic form was designed for price surveys to be used by the field teams in collecting data from different governorates, with the exception of Jerusalem J1. The electronic form is supported with GIS, and GPS mapping technique that allow the field workers to locate the outlets exactly on the map and the administrative staff to manage the field remotely. The electronic questionnaire is divided into a number of screens, namely: First screen: shows the metadata for the data source, governorate name, governorate code, source code, source name, full source address, and phone number. Second screen: shows the source interview result, which is either completed, temporarily paused or permanently closed. It also shows the change activity as incomplete or rejected with the explanation for the reason of rejection. Third screen: shows the item code, item name, item unit, item price, product availability, and reason for unavailability. Fourth screen: checks the price data of the related source and verifies their validity through the auditing rules, which was designed specifically for the price programs. Fifth screen: saves and sends data through (VPN-Connection) and (WI-FI technology).

In case of the Jerusalem J1 Governorate, a paper form has been designed to collect the price data so that the form in the top part contains the metadata of the data source and in the lower section contains the price data for the source collected. After that, the data are entered into the price program database.

Cleaning operations

The price survey forms were already encoded by the project management depending on the specific international statistical classification of each survey. After the researcher collected the price data and sent them electronically, the data was reviewed and audited by the project management. Achievement reports were reviewed on a daily and weekly basis. Also, the detailed price reports at data source levels were checked and reviewed on a daily basis by the project management. If there were any notes, the researcher was consulted in order to verify the data and call the owner in order to correct or confirm the information.

At the end of the data collection process in all governorates, the data will be edited using the following process: Logical revision of prices by comparing the prices of goods and services with others from different sources and other governorates. Whenever a mistake is detected, it should be returned to the field for correction. Mathematical revision of the average prices for items in governorates and the general average in all governorates. Field revision of prices through selecting a sample of the prices collected from the items.

Response rate

Not apply

Sampling error estimates

The findings of the survey may be affected by sampling errors due to the use of samples in conducting the survey rather than total enumeration of the units of the target population, which increases the chances of variances between the actual values we expect to obtain from the data if we had conducted the survey using total enumeration. The computation of differences between the most important key goods showed that the variation of these goods differs due to the specialty of each survey. For example, for the CPI, the variation between its goods was very low, except in some cases such as banana, tomato, and cucumber goods that had a high coefficient of variation during 2019 due to the high oscillation in their prices. The variance of the key goods in the computed and disseminated CPI survey that was carried out on the Palestine level was for reasons related to sample design and variance calculation of different indicators since there was a difficulty in the dissemination of results by governorates due to lack of weights. Non-sampling errors are probable at all stages of data collection or data entry. Non-sampling errors include: Non-response errors: the selected sources demonstrated a significant cooperation with interviewers; so, there wasn't any case of non-response reported during 2019. Response errors (respondent), interviewing errors (interviewer), and data entry errors: to avoid these types of errors and reduce their effect to a minimum, project managers adopted a number of procedures, including the following: More than one visit was made to every source to explain the objectives of the survey and emphasize the confidentiality of the data. The visits to data sources contributed to empowering relations, cooperation, and the verification of data accuracy. Interviewer errors: a number of procedures were taken to ensure data accuracy throughout the process of field data compilation: Interviewers were selected based on educational qualification, competence, and assessment. Interviewers were trained theoretically and practically on the questionnaire. Meetings were held to remind interviewers of instructions. In addition, explanatory notes were supplied with the surveys. A number of procedures were taken to verify data quality and consistency and ensure data accuracy for the data collected by a questioner throughout processing and data entry (knowing that data collected through paper questionnaires did not exceed 5%): Data entry staff was selected from among specialists in computer programming and were fully trained on the entry programs. Data verification was carried out for 10% of the entered questionnaires to ensure that data entry staff had entered data correctly and in accordance with the provisions of the questionnaire. The result of the verification was consistent with the original data to a degree of 100%. The files of the entered data were received, examined, and reviewed by project managers before findings were extracted. Project managers carried out many checks on data logic and coherence, such as comparing the data of the current month with that of the previous month, and comparing the data of sources and between governorates. Data collected by tablet devices were checked for consistency and accuracy by applying rules at item level to be checked.

Data appraisal

Other technical procedures to improve data quality: Seasonal adjustment processes

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