4.8 Income, Program Participation & Assets

• 4.8.1 Assets & Debts
• 4.8.2 Income
• 4.8.3 Program Participation

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The NLSY97 survey collects a large amount of detailed information on the income of youth respondents, which complements the labor market data described in section 4.3, "Employment." Some youths also answer questions on their assets, debts, and participation in government programs for low-income individuals and families. In addition, information is available for other members of the household, as described in section 4.6.5, "Household Composition," and section 4.6.7, "Parent Characteristics."

Table 1 summarizes the NLSY97 User's Guide subtopics available in this section and any global universe restrictions affecting those subtopics.  Users should note that certain questions or groups of questions within a subtopic may have additional restrictions.  Please consult the NLSY97 questionnaire and codebook for more information on particular questions.

4.8 Table 1. Income, Program Participation & Assets Subtopics and Universe Restrictions

Independence criteria.  In all rounds, certain criteria apply to all NLSY97 respondents.  Youths are considered independent if they have had a child, are enrolled in a 4-year college, are no longer enrolled in school, are not living with any parents or parent-figures, or have ever been married or are in a marriage-like relationship at the time of the survey.  Reaching the age of 18 is another criteria for independence, but the reference date for that age has varied between surveys and questionnaire sections.  See Figure 1 below for more details.

4.8 Figure 1. NLSY97 Independence Criteria

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4.8.1 Assets & Debts

This section was split in two in round 9.  Those below age 25 who were eligible answered the questions in prior rounds.  Those born in 1980 answered the YAST25 (age 25) questions which were similar to but not the same as the age 20 questions. Independent youths[1] are surveyed on their current asset holdings and the amount of debt they currently owe. The assets section of the questionnaire first determines if respondents rent or own their dwelling place.  These questions are tailored to respondents living on a farm or ranch, in a mobile home, or in another living situation (e.g., house, apartment).  Renters are then asked to state the amount they pay in rent and utilities (such as heat, electricity, and water) per month.  In rounds 2-9, respondents who own their own dwelling were asked for more details, such as the percentage of the residence they owned, its value, and whether they have made improvements.  Independent youths who were eligible to go through the assets section in round 1 numbered 429; this group increased to 1,835 in round 2 and grew to 3,105 in round 3.  With the new age restrictions described below, 4,164 respondents were eligible in round 4, 3,966 respondents were eligible in round 5, 3,945 in round 6, 2,199 in round 7, and 1,615 in round 8.  In round 9, 1,331 were eligible for the YAST25 section, with 181 eligible for the YAST section.

Data hint

As described in the introduction to this section, the eligibility requirements for answering the assets questions changed beginning in round 4: Rounds 1-3.  Respondents were asked assets questions if they were age 18 as of the previous calendar year reference date (12/31/1998 for round 3), or if they met one of the other independence criteria (e.g., got married, had a child). Rounds 4-9. Respondents were asked assets questions if they were newly independent or if they were age 18 as of the interview date.  In addition, respondents were asked assets questions again in the first interview after they turned age 20. Therefore, not all independent respondents reached the assets section in each round.  For example, in round 3 John Doe was age 16 and got married; because he was considered newly independent, he answered the assets section of the questionnaire.  In round 4, he was age 17 but did not yet meet the age requirement; he skipped the assets section.  In round 5, he was age 18 and now eligible to again answer the assets questions.  In round 6, he was skipped past the assets questions at age 19 but when he turned 20, he answered them in round 7.  In round 8 he was 21 and was skipped passed the assets questions. A similar series of asset questions are asked again when the respondent is 25. However, in round 9 these were asked of the 1980 birth cohort rather than relying on age as of interview date.

Respondents who report owning part of their residential property are asked to estimate the percentage of the property held by them and the current value of their holdings.  The respondent is asked if the property is mortgaged and, if so, the amount still owed on that mortgage or land contract.  Additional questions determine the amount of property debt.  The survey first asks respondents if a friend or relative loaned money to buy (or remodel) the residence.  Follow-up questions include the relationship of the lender to the youth, the amount of money each lender provided, and the amount the respondent still owes.  Next, these respondents are asked if the property is secured by other loans such as second mortgages or home equity loans.  If the respondent reports either type of loan, he or she is asked to state the amount of the loan currently outstanding.  Those who own property are surveyed on the amount they paid in property taxes in the past calendar year.  A follow-up question asks for the average amount each respondent pays for utilities in a month.

After determining the respondent's residential ownership status, the second part of this section surveys other asset holdings, such as a business or vehicle, as well as current debt.  For each asset held or debt owed by the respondent, he or she reports the amount the asset is worth or the amount currently owed.  If a respondent reports a loan of $200 or more, follow-up questions determine the relationship of the lender to the respondent, the amount loaned, and the amount owed.  Figure 1 lists NLSY97 asset and debt categories used in each round.

4.8.1 Figure 1. NLSY97 Asset and Debt Categories

In rounds 2-9, additional questions referred to the spouse or partner of the youth.  Respondents who were married or began living with a partner since the date of last interview were asked for the amount that would be left over if the spouse/partner sold their assets and paid off any debts.  A second question, directed toward all respondents with a spouse or partner, asked whether that person had assets, savings, or investments that the respondent did not share.  A follow-up question recorded the value of these assets.

Parent Questionnaire (round 1).  The responding parent provided information on his or her assets and debts in round 1.  These data are described in section 4.6.7, "Parent Characteristics."

Created Variables.  Based on the information provided by independent youths, a created variable calculates the net worth of the respondent's household (CV_HH_NET_WORTH_Y), defined as the amount of total assets minus the amount of total debts.  Asset values used in this calculation are property or money from estates; ownership of a ranch, mobile home, house, business, or second piece of real estate; a retirement pension; savings accounts; stocks; the value of owned vehicles; the value of owned furniture; and other assets.  Debt values used are a mortgage, a second mortgage, loans owed, amount owed on a car, and other loans.  A similar net worth variable is calculated based on parent data; see section 4.6.7, "Parent Characteristics," for details.

Additional asset variables have been created in round 9 for all eligible respondents regardless of their interview status in a particular year.  This set of created variables includes several variables depicting assets at age 20 and age 25, including the respondent's household net worth (CVC_HH_NET_WORTH_20); the value, debt, and primary housing type (CVC_HOUSE_VALUE_20, CVC_HOUSE_DEBT_20, and CVC_HOUSE_TYPE_20); the value of financial and non-financial assets (CVC_ASSETS_FINANCIAL_20 and CVC_ASSETS_NONFINANCIAL_20); the amount of debt the respondent owed excluding housing value (CVC_ASSETS_DEBTS_20); and the round during which the assets information was collected (CVC_ASSETS_RND_20).

Comparison to Other NLS Surveys:  Information on assets is regularly collected from each cohort (but only from NLSY79 Children age 15 and older).  Users should note, however, that the assets included have varied widely over time and among cohorts.  Data on the respondent's debts have been collected from each cohort on a less regular basis.  For more details, including specific years, consult the appropriate cohort's User's Guide.

Survey Instruments:  These questions are found in the income and assets section (YINC) of the round 1 Youth Questionnaire and in the assets section (question names begin with YAST or YAST25) of the Youth Questionnaire beginning in round 2.

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4.8.2 Income

Youth Questionnaire.  The NLSY97 collects gross wage and salary data for the past calendar year from all respondents.  In addition to income from a regular job, the surveys instruct the respondent to include income from odd jobs, temporary or seasonal work, and military positions.  Information is also gathered on allowances during the past calendar year, including the amount received and periodicity of the allowance. 

Independent youths[1] answer more extensive questions about income in the past calendar year in addition to wages and salary.  First, they report any income received from self-employment, including a farm, business, or professional practice.  Respondents who are married or living with a partner report the amount of wage and salary income the spouse/partner received, as well as the amount earned from any self-employment.  A series of questions then records income received by the respondent and spouse or partner together from the following sources: child support; interest payments; dividend payments; rental properties; inheritance, trust, or annuity income; and other income received in the last calendar year.  Some sources considered "other income" include Social Security, alimony, or survivor's benefits.  If respondents or their spouses/partners have any sources of income, they state whether they claimed an Earned Income Tax Credit (EITC) on their federal income tax return for the past calendar year.

Independent youths also report parental transfers in the past year.  Aside from allowances and parental loans, respondents state the amount of money they received from each parent or guardian.  Additionally, round 1 respondents were asked if they made regular payments to their parents during the previous year.  For respondents living at home, this survey collected information on money paid for room and board.

All older youths answer questions about the income of their parents or guardians.  In round 1, this group was composed of respondents age 14 and older as of 12/31/96; round 2 collected this data from youths who were age 14 or older as of 12/31/97.  In rounds 3-6, all respondents were age-eligible for these questions.  For each parent or guardian listed, the respondent is asked if that person received any earnings or income during the previous calendar year.  Follow-up questions gather information on the amount the parent or guardian earned.  Finally, independent respondents are asked about the income of all other individuals age 14 or older who currently reside in the household.

Parent Questionnaire (round 1).  Data on the earnings and income of the youth in 1996 were collected from the responding parent.  The survey also established the amount of financial support given to an independent youth by the parent.

The responding parent provided information about his or her own income, the income of his or her spouse, and the income of each household occupant age 14 or older.  These data are described in section 4.6.5, "Household Composition," and section 4.6.7, "Parent Characteristics."

Household Income Update.  In rounds 2-5, a parent of the respondent answered this short paper instrument concerning his or her income and that of his or her spouse/partner.  See section 4.6.7, "Parent Characteristics," for more information.

Created Variables.  If the respondent is independent, a variable based on the data he or she provided in the income section of the youth questionnaire (YINC) calculates total household income (CV_INCOME_GROSS_YR) in the previous calendar year.  Several questions are combined to create this income variable:  non-farm and farm wages, the wages of the respondent's spouse/partner, child support, interest and dividends from stocks or mutual funds, rental income, retirement pension/alimony/Social Security payments, parents' income if the respondent resides with them, monetary gifts (other than allowance) from parents, public support sources, and other income.  Users should note that starting in round 8, the total household income variable was no longer created; instead, a variable was created that calculated income solely from family members (CV_INCOME_FAMILY).  This is due to a change in the wording of questions asked during the survey.  A second variable creates a poverty status ratio comparing total household income (from the youth CV_INCOME_GROSS_YR variable) to the federal poverty level for the previous year (CV_HH_POV_RATIO).  In round 1, these two variables could be based on either youth or parent data as described in section 4.6.7, "Parent Characteristics."  Therefore, a third variable, CV_HH_INCOME_SOURCE, indicates whether the information in round 1 was taken from the youth or parent interview.

Comparison to Other NLS Surveys:  Information on income is regularly collected from each cohort.  Users should note, however, that the income sources included have varied widely over time and among cohorts.  For more information, refer to the appropriate cohort's User's Guide.

Survey Instruments:  These questions are found in the income and assets section (YINC) of the round 1 Youth Questionnaire, the income section (question names begin with YINC) of the round 2-9 Youth Questionnaires, and section PC10 of the round 1 Parent Questionnaire.

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4.8.3 Program Participation

Independent youth[1] provide information about participation in government programs.  The respondents are told that these questions refer only to payments made directly to themselves and/or their spouses; answers should not include payments made to other members of the household.  For each program listed in Figure 1, the surveys ask whether the respondent or his or her spouse had participated in the program since the last interview (for respondents who had answered these questions in a previous interview) or had ever participated (for respondents going through this section for the first time).  If so, respondents report whether they are currently receiving payments from that program.  Questions concerning unemployment compensation or Worker's Compensation receipt ask about the respondent and spouse separately.

4.8.3 Figure 1. Government Assistance Programs

For each program reported, the survey collects information on the duration of each spell of receipt (e.g., stop and start dates) and the amount of aid the respondent or his or her spouse/partner received for each spell.  For certain programs (e.g., AFDC or ADC, WIC, food stamps), the survey asks the respondent to state the members of the household covered by the program.

These respondents are then questioned on whether they lived in public housing, received public housing assistance, or received rental vouchers.  The wording in these questions directs respondents to report only the amount they directly received from public housing benefits, as opposed to indirect benefits (e.g., living with a parent). Similar to the information gathered for other programs, respondents are asked to state dates they participated in these programs and the dollar amount of the benefits they received.

Created Variables.  To summarize the above information for the user, three series of created variables provide data about total benefit amounts received and time periods of receipt.  Table 1 shows the variables available for unemployment insurance, Worker's Compensation, and any other government program.

4.8.3 Table 1. Created Program Participation Summary Variables

In addition, the Event History data set contains a number of created variables tracing the respondent's participation in various government programs over time.  Interested researchers should refer to section 4.4, "Event History."

Additional created variables about program participation have been added in round 9 for all eligible respondents regardless of their interview status in a particular year.  Created variables specific to unemployment insurance include the number of spells and the number of months the respondent received unemployment insurance during the year or ever (CVC_UI_SPELLS_YR, CVC_UI_YR, and CVC_UI_EVER) and the dollar amount of the unemployment benefits the respondent received during each year (CVC_AMT_UI_YR).  Variables about payments from other government programs include the number of months cash or transfer payments were received during the year or ever (CVC_GOVNT_PRG_YR and CVC_GOVNT_PRG_EVER) and the total amount received (CVC_AMT_GOVNT_PRG_YR).

Welfare Knowledge.  In round 7, a welfare knowledge section was administered to a subsample of female respondents both with and without resident children.  This section asked respondents about their general knowledge of government assistance programs to low-income families.  Respondents were asked to estimate how much aid and Food Stamps, if any, a hypothetical family (a single mom with two kids living in a rented apartment) might receive in different situations or if the family qualified for government-supported health insurance.  Respondents also answered questions about time limits on government assistance programs, Food Stamps, and government-supported health insurance.  Data on welfare knowledge is only available on the geocode file.

Comparison to Other NLS Surveys:  Information on public assistance has been regularly collected for each cohort (but only for NLSY79 Children age 15 and older) as part of the income section.  Additionally, the NLSY79 data include a series of created variables detailing spells of program participation and amounts of assistance received.  Consult the appropriate cohort's User's Guide for details.

Survey Instruments:  These questions are found in the program participation section (question names begin with YPRG) of the Youth Questionnaire.

^[1] To be considered independent, respondents must have at least one of these characteristics: are age 18 or older, have had a child, are enrolled in a 4-year college, have ever been married or are in a marriage-like relationship at the time of the survey, are no longer enrolled in school, or are not living with any parents or parent-figures.

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