Panel Study of Income Dynamics
Encyclopedia
The Panel Study of Income Dynamics (PSID) is the world’s longest running household panel survey. The PSID is a longitudinal panel survey of United States families that measures economic, social, and health factors over the life course and across generations. Data have been collected from the same families and their descendants since 1968.
The PSID gathers data describing circumstances of the family as a whole (e.g., type of housing) and data about particular persons in the family (e.g., health, earnings). While some information is collected about all individuals in the family, the greatest level of detail is ascertained for the primary adult(s) heading the family (called the head and wife). The PSID has consistently achieved unprecedented response rates, and as a consequence of low attrition and the success in following young adults as they form their own families, the sample size has grown from 4,800 families in 1968, to 7000 families in 2001, to 7400 by 2005, and to more than 9,000 as of 2009. By 2003, the PSID had collected information on more than 65000 individuals. As of 2009, the PSID had information on over 70,000 individuals, spanning as many as 4 decades of their lives.
The structure of the PSID started with two distinct samples of individuals. A nationally representative sample designed by the Survey Research center became known as the SRC sample. The Census asked that a second sample of individuals, drawn from lower income levels be sampled, and this became known as the Survey of Economic Opportunity (SEO) sample. This second sample, though not nationally representative, allowed for more studies to investigate poverty in the United States. After this initial 1968 interview, families were interviewed each year until 1997. After 1997, the survey has been biannual, data being collected every two years. Over time, as individuals leave their household, they are tracked, and form a new head of household in their new residence. As time passed, the representativeness of the original sample became more and more out of line with the overall US demographic. To ameliorate the potential bias, two additional samples were added to the PSID. A third sample consisting of Latinos was added. Finally, in 1997, a new fourth Immigrant sample was added, and the other three reorganized. All three continued to be collected, but with a reduced number of households. The two "core" samples (SRC and SEO) were reduced to include 6168 families, and the Latino sample was reduced to 2000 families. To these, a new set of 441 families from the Immigrant sample created a study group capable of tracking the current demographics in the US.
The method of interviewing in the PSID has changed over time. Until 1972, interviews were done in person using paper, but after 1973 phone interviews were used. Starting in 1993, interviews were conducted using Computer Assisted Telephone (CAT) technology.
Many of these areas have been included in the instrument since 1968. Hundreds of additional variables that fall into other domains have been collected in various waves throughout the history of the PSID. No identifying information is distributed to data users and the identity of all respondents is held in strict confidence.
More than 2,600 peer-reviewed publications – currently 1 every 4 days -- are based on PSID data published in the fields of economics
, sociology
, demography
, psychology
, child development, public health
, medicine
, education
, communications, and others. The PSID was named one of the National Science Foundation
's "Nifty Fifty," NSF-funded inventions, innovations and discoveries that have become commonplace in our lives http://www.nsf.gov/od/lpa/nsf50/nsfoutreach/htm/home.htm.
.
The main source of support for the study comes from the National Science Foundation
(http://www.nsf.gov/), the National Institute on Aging
( http://www.nia.nih.gov/), and the National Institute of Child Health and Human Development
(http://www.nichd.nih.gov/). There are other important sponsors of the study as well including the Office of the Assistant Secretary for Planning and Evaluation of the United States Department of Health and Human Services
(http://aspe.hhs.gov/_/index.cfm), the Economic Research Service of the United States Department of Agriculture
(http://www.ers.usda.gov/), the United States Department of Housing and Urban Development
(http://www.hud.gov/), and the Center on Philanthropy at Indiana University
(http://www.philanthropy.iupui.edu/).
The PSID gathers data describing circumstances of the family as a whole (e.g., type of housing) and data about particular persons in the family (e.g., health, earnings). While some information is collected about all individuals in the family, the greatest level of detail is ascertained for the primary adult(s) heading the family (called the head and wife). The PSID has consistently achieved unprecedented response rates, and as a consequence of low attrition and the success in following young adults as they form their own families, the sample size has grown from 4,800 families in 1968, to 7000 families in 2001, to 7400 by 2005, and to more than 9,000 as of 2009. By 2003, the PSID had collected information on more than 65000 individuals. As of 2009, the PSID had information on over 70,000 individuals, spanning as many as 4 decades of their lives.
The structure of the PSID started with two distinct samples of individuals. A nationally representative sample designed by the Survey Research center became known as the SRC sample. The Census asked that a second sample of individuals, drawn from lower income levels be sampled, and this became known as the Survey of Economic Opportunity (SEO) sample. This second sample, though not nationally representative, allowed for more studies to investigate poverty in the United States. After this initial 1968 interview, families were interviewed each year until 1997. After 1997, the survey has been biannual, data being collected every two years. Over time, as individuals leave their household, they are tracked, and form a new head of household in their new residence. As time passed, the representativeness of the original sample became more and more out of line with the overall US demographic. To ameliorate the potential bias, two additional samples were added to the PSID. A third sample consisting of Latinos was added. Finally, in 1997, a new fourth Immigrant sample was added, and the other three reorganized. All three continued to be collected, but with a reduced number of households. The two "core" samples (SRC and SEO) were reduced to include 6168 families, and the Latino sample was reduced to 2000 families. To these, a new set of 441 families from the Immigrant sample created a study group capable of tracking the current demographics in the US.
The method of interviewing in the PSID has changed over time. Until 1972, interviews were done in person using paper, but after 1973 phone interviews were used. Starting in 1993, interviews were conducted using Computer Assisted Telephone (CAT) technology.
Child Development Supplement
Beginning in 1997, a new extension of the PSID started collecting information about the children of the members of the PSID. Extensive information has been collected from parents, teachers, and schools pertaining to the social, cognitive, and physical development of these children.File Structure of the PSID
The PSID's information is held in many files. The main head and wife responses are held in a series of "Family Files" that are uniquely identified by a Family ID number. A smaller subset of information pertaining to individuals (whether they are a head, wife, or other family member) is contained in the cross-year individual file, and each record is uniquely identified by a Family-ID, Personal-ID pair. Many additional supplemental files are available with supplemental information that may have been collected for only one or a few years.Topical Information in the PSID
The PSID collects data on a wide array of social, demographic, health, economic, geospatial and psychological data. As of 2009, the 75 minute interview collected data on: (Table 1)- employment,
- earnings,
- income from all sources,
- expenditures covering 100% of total household spending,
- transfers,
- housing,
- education,
- geospatial data,
- health status,
- health behaviors,
- health insurance,
- early childhood and adult health conditions and their timing,
- emotional well-being,
- life satisfaction,
- mortality and cause of death,
- marriage and fertility,
- participation in government programs,
- financial distress including problems paying debt such as mortgagesMortgage loanA mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
and foreclosureForeclosureForeclosure is the legal process by which a mortgage lender , or other lien holder, obtains a termination of a mortgage borrower 's equitable right of redemption, either by court order or by operation of law...
, - vehicle ownership,
- wealth and pensionPensionIn general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
s, and - philanthropyPhilanthropyPhilanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
.
Many of these areas have been included in the instrument since 1968. Hundreds of additional variables that fall into other domains have been collected in various waves throughout the history of the PSID. No identifying information is distributed to data users and the identity of all respondents is held in strict confidence.
More than 2,600 peer-reviewed publications – currently 1 every 4 days -- are based on PSID data published in the fields of economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, sociology
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...
, demography
Demography
Demography is the statistical study of human population. It can be a very general science that can be applied to any kind of dynamic human population, that is, one that changes over time or space...
, psychology
Psychology
Psychology is the study of the mind and behavior. Its immediate goal is to understand individuals and groups by both establishing general principles and researching specific cases. For many, the ultimate goal of psychology is to benefit society...
, child development, public health
Public health
Public health is "the science and art of preventing disease, prolonging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals" . It is concerned with threats to health based on population health...
, medicine
Medicine
Medicine is the science and art of healing. It encompasses a variety of health care practices evolved to maintain and restore health by the prevention and treatment of illness....
, education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
, communications, and others. The PSID was named one of the National Science Foundation
National Science Foundation
The National Science Foundation is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National Institutes of Health...
's "Nifty Fifty," NSF-funded inventions, innovations and discoveries that have become commonplace in our lives http://www.nsf.gov/od/lpa/nsf50/nsfoutreach/htm/home.htm.
Researchers and funding
The PSID is conducted by the Survey Research Center at the Institute for Social Research, housed at the University of MichiganUniversity of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
.
The main source of support for the study comes from the National Science Foundation
National Science Foundation
The National Science Foundation is a United States government agency that supports fundamental research and education in all the non-medical fields of science and engineering. Its medical counterpart is the National Institutes of Health...
(http://www.nsf.gov/), the National Institute on Aging
National Institute on Aging
The National Institute on Aging ' is a division of the U.S. National Institutes of Health , located in Baltimore, Maryland.The NIA leads a broad scientific effort to understand the nature of aging and to extend the healthy, active years of life...
( http://www.nia.nih.gov/), and the National Institute of Child Health and Human Development
National Institute of Child Health and Human Development
The Eunice Kennedy Shriver National Institute of Child Health and Human Development , created by Congress in 1962, supports and conducts research on topics related to the health of children, adults, families, and populations...
(http://www.nichd.nih.gov/). There are other important sponsors of the study as well including the Office of the Assistant Secretary for Planning and Evaluation of the United States Department of Health and Human Services
United States Department of Health and Human Services
The United States Department of Health and Human Services is a Cabinet department of the United States government with the goal of protecting the health of all Americans and providing essential human services. Its motto is "Improving the health, safety, and well-being of America"...
(http://aspe.hhs.gov/_/index.cfm), the Economic Research Service of the United States Department of Agriculture
United States Department of Agriculture
The United States Department of Agriculture is the United States federal executive department responsible for developing and executing U.S. federal government policy on farming, agriculture, and food...
(http://www.ers.usda.gov/), the United States Department of Housing and Urban Development
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...
(http://www.hud.gov/), and the Center on Philanthropy at Indiana University
Indiana University
Indiana University is a multi-campus public university system in the state of Indiana, United States. Indiana University has a combined student body of more than 100,000 students, including approximately 42,000 students enrolled at the Indiana University Bloomington campus and approximately 37,000...
(http://www.philanthropy.iupui.edu/).
See also
The PSID has sister surveys conducted in other countries, including:- German Socio-Economic Panel (SOEP), housed at the German Institute for Economic ResearchGerman Institute for Economic ResearchThe German Institute for Economic Research, German Deutsches Institut für Wirtschaftsforschung is one of the leading economic research institutes in Germany. It is an independent, non-profit academic institution which is involved in basic research and policy advice...
(DIW) Berlin - British Household Panel SurveyBritish Household Panel SurveyThe British Household Panel Survey , carried out at the Institute for Social and Economic Research of the University of Essex, is an instrument for social and economic research. A sample of British households was drawn and first interviewed in 1991. The members of these original households have...
(BHPS) conducted by investigators at the University of EssexUniversity of EssexThe University of Essex is a British campus university whose original and largest campus is near the town of Colchester, England. Established in 1963 and receiving its Royal Charter in 1965...
and now merging with the UK households: a longitudinal studyUK households: a longitudinal studyThe UK Household Longitudinal Study is now known as Understanding Society. It is the largest panel survey in the world and thus an important instrument for social and economic research. Its sample size is 40,000 households from the United Kingdom or approx... - Household, Income and Labour Dynamics in Australia SurveyHousehold, Income and Labour Dynamics in Australia SurveyThe Household, Income and Labour Dynamics in Australia survey is an Australian household-based panel study which began in 2001. It has been used for examining issues such as the incidence of persistent poverty; assets and income in the transition to retirement; the correlates and impact of...
(HILDA) - Survey on Household Income and WealthSurvey on Household Income and WealthThe Survey on Household Income and Wealth is a statistical survey conducted by the Sample Surveys Division of the Banca d'Italia .The main objective of the SHIW is to study the economic behaviours of Italian households....
(SHIW)