This paper contains a proof that under one testable condition a measure of economic mobility formed by the ratio of permanent to total variance employing the methods of Gottschalk and Moffitt (1994) is equivalent to the Shorrocks R constructed with a Theil General Entropy Index.

This paper examines the earnings losses of displaced workers over the business cycle. Long-term earnings losses for these workers during a recessionary period are 1.7 to 3.9 times larger than for those observed during a period of economic growth.

Using internal March CPS data, we construct and make available variances and cell-means for all topcoded income values in the public-use CPS. We then demonstrate how their inclusion can improve existing imputation methods in the labor earnings inequality literature.