Chang, R. Y. & Lindamood, S. (1993). Factors
related to the risk of household income variability. Financial Counseling
and Planning, 4, 47-66.
related to the risk of household income variability. Financial Counseling
and Planning, 4, 47-66.
Factors Related to
the Risk of Household Income Variability
Y. Regina Chang1
and Suzanne Lindamood2
Patterns of household income
instability were analyzed using panel data from the 1983 and 1986 Surveys
of Consumer Finance. The dataset included annual incomes for households
for the years 1983 through 1985. Almost two-thirds (64.8%) of households
had increases in real income between the first two years and the second
two years, but households with heads who were poorly educated, older, self-employed,
or who changed from being married to unmarried were at high risk of a substantial
drop in real income. Young households had a 25% chance of an income increase
of 50% or more.
Key Words: Income variability, Financial planning, Risk
Affiliations at the time of publication:
1. Y. Regina Chang, Assistant Professor, Department
of Consumer and Family Economics, University of Missouri-Columbia, 239
Stanley Hall, Columbia, MO 65211. {Current E-mail:
rchang@epsilon.com .}
of Consumer and Family Economics, University of Missouri-Columbia, 239
Stanley Hall, Columbia, MO 65211. {Current E-mail:
rchang@epsilon.com .}
2.Suzanne
Lindamood, Staff attorney, Ohio Legislative Services Commission, Columbus,
OH. E-mail:suzannelindamood@hotmail.com
Lindamood, Staff attorney, Ohio Legislative Services Commission, Columbus,
OH. E-mail:suzannelindamood@hotmail.com