.. whether we see an occupational change, but also how we perceive the distance of realized changes. Among other things, I’ll discuss the figure above which shows how observed distances of transitions change once we correct for miscoding.

.. whether we see an occupational change, but also how we perceive the distance of realized changes. Among other things, I’ll discuss the figure above which shows how observed distances of transitions change once we correct for miscoding.

In the wage figure, P10 is the bottom ten percent of hourly wages. In the income figure, it’s the bottom ten percent of total family incomes.

This is an early stage draft and we welcome feedback. What should we have done differently? What literature are we missing? Any feedback is welcome!

Along the family income dimension, we find a disproportionate increase of inflation among lower-income households, and the opposite results: relative to January 2020 (i.e., before Covid stimulus packages), real family income fell for the bottom, and increased for the top.

I expected different results, but income-dependent price indices turn out to yield similar results as the CPI, since family income and wages are very poorly correlated in the data.

Our main contribution is that we use granular consumption data to compute income-dependent price indices and use these to deflate real wages and real income. Real wages grew for the bottom deciles and overall converged, in line with @arindube.bsky.social 's earlier work.