Assessing Asset Data on Low-Income Households - Urban Institute

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Exhibit 1. <strong>Data</strong> Set Criteria: Guide to Numerical Ratings This exhibit provides an explanation of the numerical ranking system used to rate data sets against the criteria. For each criterion, a data set is assigned a numerical rating from 1 to 3 where a low numbered rating implies that the data set does a good job fulfilling the criterion and a high rating implies that the data set does a mediocre job fulfilling the criterion. Relevancy: Whether <strong>Data</strong> Measure <strong>Asset</strong>s and Liabilities 1. <strong>Data</strong> set contains information regarding broad asset holding categories and extensive information about detailed asset holding elements. 2. <strong>Data</strong> set contains information regarding broad asset holding categories but limited information about detailed asset holding elements. 3. <strong>Data</strong> set contains limited information about asset holdings. Representativeness: Whether <strong>Data</strong> Are Representative of the Total U.S. Population and the Low-Income Population 1. <strong>Data</strong> set is representative of the total U.S. population and the low-income population. 2. <strong>Data</strong> set is representative of a subset of the U.S. population. 3. <strong>Data</strong> set is not representative of the U.S. population or key subpopulation. Recurrence: Whether <strong>Data</strong> Are Released on a Regular Basis and Collection Is Scheduled to Continue into the Foreseeable Future 1. <strong>Data</strong> are released regularly and collection is scheduled to continue into the foreseeable future. 2. <strong>Data</strong> are released regularly but collection is not scheduled to continue into the foreseeable future. 3. <strong>Data</strong> are not released regularly and collection is not scheduled to continue into the foreseeable future. Richness of Correlates: Whether <strong>Data</strong> Include Correlates and Outcomes of Interest to the Research and Policy Community 1. <strong>Data</strong> set provides a rich set of correlates. 2. <strong>Data</strong> set provides a limited range of correlates. 3. <strong>Data</strong> set provides no correlates of interest. 6
We evaluate these 12 data sets against the four criteria presented above as a way to identify a subset of data sets that have the greatest potential to provide informative and reliable asset and liability data. Exhibit 2 identifies the extent to which these data sets meet the criteria. Based on the four evaluation criteria, we identify three data sets that have the greatest potential for providing asset and liability data. These “primary” data sets are the SIPP, PSID, and SCF. The discussion below provides a rationale for choosing these as primary data sets, by evaluating the 12 data sets in the context of the four criteria. More detailed information about the three primary data sets is presented in Section IV and additional information on the nine secondary data sets is presented in Appendix A and Appendix Exhibit A-1. 3 In addition to the 12 data sets covered in this section, the forthcoming Saving for Education, Entrepreneurship, and Downpayment (SEED) data are expected to contribute to our understanding of assets among the low-income population. 4 A. Relevancy: Whether <strong>Data</strong> Measure <strong>Asset</strong>s and Liabilities Seven of the 12 data sets received a rating of “1” under this criterion—ADD-E, AFIA, HRS, NLSY79, PSID, SCF, and SIPP. All of these data sets provide information on broad asset holding categories and extensive information about detailed asset holding elements, although there is variation across data sets (see Exhibit 3). For example, the SCF and SIPP provide detailed information on IRAs, Keogh accounts, 401(k) accounts, and Thrift accounts, whereas the PSID does not provide this level of detail, but added a section on employer-based pensions and IRAs starting in 1999. Another example of differences across the data sets is that the SCF, HRS, and NLSY provide the cash value of life insurance, whereas this information is not available in the SIPP. While there are differences across these seven data sets, and some data sets provide more information than others, all seven provide extensive asset and liability data. Of the remaining five data sets, three received a rating of “2” (ADD-AM, CEX, and NSFH,) and two received a rating of “3” (CPS and HMDA). The data sets that received a rating of “2” provide some important and detailed information on assets and liabilities. The NSFH and ADD-AM receive a rating of “2” because information on financial assets are grouped into one and two questions, respectively. These two data sets do, however, provide relatively detailed information on nonfinancial tangible assets and liabilities. The CEX has relatively detailed information on many assets and liabilities; however, the survey does not provide any information on important categories such as retirement accounts. Also, the Bureau of Labor Statistics (the government agency that sponsors the CEX) warns users of nonresponse to asset and liability questions in the CEX, and identifies the SCF as an alternative source for asset and liability data 3 Appendix Exhibit A-1 provides information about of each of the secondary data sets, as well as information on five additional data sets identified as “limited use” data sets. 4 The SEED data are also discussed in Appendix A. 7
Page 1 and 2: Assessing
Page 3 and 4: Acknowledgments The report has bene
Page 5 and 6: D. Summary of Primary Data<
Page 7 and 8: income are not uniform across studi
Page 9 and 10: The Poor Finances Team Center for S
Page 11 and 12: Based on these four criteria, we id
Page 13 and 14: • Option 2: Encourage survey resp
Page 15 and 16: I. INTRODUCTION The lack of quality
Page 17 and 18: Ideally, data sets would provide de
Page 19: 2. Data set provid
Page 23 and 24: Exhibit 3. Asset a
Page 25 and 26: Exhibit 3. Asset a
Page 27 and 28: (U.S. BLS 2005). The two data sets
Page 29 and 30: complete. While the Asset</
Page 31 and 32: Exhibit 4. Correlates Provided by <
Page 33 and 34: Exhibit 4. Correlates Provided by <
Page 35 and 36: Exhibit 5. Summary of Primary <stro
Page 37 and 38: Security system, where this contrib
Page 39 and 40: Topical modules supplement the core
Page 41 and 42: estimates that approximately 25 per
Page 43 and 44: on the value of assets and two ques
Page 45 and 46: ange offered. In general for income
Page 47 and 48: the population. The cases in the li
Page 49 and 50: of the list sample, which oversampl
Page 51 and 52: used to make such estimates. This i
Page 53 and 54: low-income households, average SIPP
Page 55 and 56: in the interest of enhancing the us
Page 57 and 58: terms of immigrants, the PSID added
Page 59 and 60: taken into account when imputing li
Page 61 and 62: asset holdings and liabilities, and
Page 63 and 64: Schoeni, Robert F. 1997. “Private
Page 65 and 66: Assistance for Needy Families (TANF
Page 67 and 68: mandated product of Home Mortgage D
Page 69 and 70: Appendix Exhibit A-1. Summary of Se
Page 71 and 72:
Appendix Exhibit A-1. Summary of Se
Page 73 and 74:
3. As of [Last Day of Reference Per
Page 75 and 76:
6) Other 4. Were any of these prope
Page 77 and 78:
3. How much principal is currently
Page 79 and 80:
IRA/Keogh 1. Do [you/you or anyone
Page 81 and 82:
model, year acquired) and how and w
Page 83 and 84:
live with you now and who took $5,0
Page 85 and 86:
2. Do you have Mortgage-backed bond
Page 87 and 88:
Thrift Accounts, 401(k) 1. Are you
Page 89 and 90:
23) Burial lot 8. Is this property
Page 91 and 92:
else? (DO NOT INCLUDE PENSION-TYPE
Page 93 and 94:
14. What is the total amount that y
Page 95:
6. What is the total amount that yo
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