Abstract

A review of the existing academic literature as well as available government publications reveals a lack of information regarding expenditure behavior of high income households. In this paper, we combine multiple years of Consumer Expenditure Survey Public Use Microdata provided by the Bureau of Labor Statistics (BLS) and compute average expenditures and standard errors. We apply the same methodology used by the BLS to estimate the average expenditures by household income and household size for households with income of $70,000 and higher. The resultant tables provide details on consumption and saving patterns for higher income groups that are unavailable in the tables published by the BLS. Our tables can be utilized by forensic economists in practice for the determination of consumption and savings values in wrongful death matters in high income households.

Abstract

This study examines the importance of incorporating age-earnings profiles into the estimation of future earnings. Using data from the 2000 Census of the Population and the 2001-2015 American Community Surveys, we estimate age-earnings profiles for seven different education groups after controlling for period and cohort effects. We compare estimates of the loss in future earnings using the age-earnings profiles versus two popular alternatives: assuming a constant rate of earnings growth across the life-cycle or using cross-sectional data for age groups to estimate wage growth for various age ranges. Our results imply that a failure to incorporate the age-earnings profile into estimates of earnings losses can lead to significant over- or under-statement of losses depending on the age at which the damages begin and the educational attainment of the injured party.

Abstract

Do workers in more physically demanding jobs have different worklives than those in more sedentary occupations? To answer this question, we link individual data from the Current Population Survey with occupation characteristics from the Occupational Information Network to categorize individuals into three mutually exclusive initial labor market states: inactive, or active in either a more or less physically demanding occupation. A three-state Markov model estimates worklives given transitions across states over time. There is not a significant difference in worklives between the two occupation groups, even when controlling for sex, age and education. Men and women initially in more physically demanding occupations can be expected to work just as long as their counterparts initially in less physically demanding occupations.

The associates listed here have become NAFE members since the last issue of the JFE.

Charles Beauchamp

312 Culleys Stand

Madison, MS 39110

cfbeauchamp@mc.edu

(615)962-0896

Cristina Benton

1555 Watertower Place, Ste. 100

East Lansing, MI 48823

cbenton@andersoneconomicgroup.com

(517)333-6984

John Berg

7222 East Mercer Way

Mercer Island, WA 98040

johnberg@vocationalconsultinginc.com

(206)933-8870

Ronald Bero

The BERO Group

N16W23217 Stone Ridge Dr.. Ste. 150

Waukesha, WI 53188

ron.bero@berogroup.com

(262)522-7924

Kristofer Buchan

1923 Forest Garden Dr.

Kingwood, TX 77345

kbuchan@stoneturn.com

(979)575-6728

Tim Carpenter

6104 Roselawn Rd.

Roanoke, VA 24018

tcarpenter@roanoke.edu

(210)441-9891

Matthew Clarke

Landye Bennett Blumstein LLP

1300 Southwest Fifth Avenue

Portland,

Consumer Expenditures and Savings in High Income Households

Abstract

The Importance of Wage Growth Assumptions in Calculating Economic Damages

Abstract

Worklife by Occupation Physical Requirements: A Three-State Model

Abstract

Staggered Wage Net Discount Rates: Comment

Abstract

A Reply to “Staggered Wage Net Discount Rates: Comment”

Abstract

Assessing Economic Damages in Personal Injury and Wrongful Death Litigation: The State of South Carolina

Abstract

NAFE Members Directory

Editors’ Note

Editors’ Note

A Closer Look at Race, Ethnicity, and Gender Neutral Models

Mothers’ Worklives and Marital Status

Life-Cycle Estimates of Earnings Growth by Education and Gender