Income and Assets

Income and Assets

Both the Older Men and Young Men cohorts have been asked numerous questions about their income, assets, and debts over the course of the surveys. While many researchers use income as the primary measure of the economic resources available to a respondent, users can draw a more complete picture of economic well-being by examining both income and wealth. Wealth, which is equal to a respondent's assets minus his debts, reflects the total financial resources available to the respondent.

Income

In every survey year, respondents were asked about their pretax income. Tables 1 and 2 present the broad range of income questions asked since 1966, including wages, business and farm income, rental income, interest and dividends, and public assistance support sources. In addition to the in-depth questions about the income of the respondent and his spouse, respondents also provided their estimate for total income of all individuals in the family in some years, while in other years they were asked to estimate the total income of all individuals except their wives and themselves. Finally, respondents have been asked in select years about their ability to get along on their family's income, with choices ranging from "always have money left over" to "can't make ends meet."

User Notes

Researchers should be aware that, in years when the entire survey was shortened, some income sources were dropped altogether; in years when a more in-depth survey was used, the questions were reinserted. Additionally, users should pay careful attention to the wording of income questions to determine exactly whose income is included. In early survey years for the Older Men cohort, respondents were asked about the combined income of themselves and their wives; in later years, Older Men respondents were asked separate questions on how much income they and their wives received from the various sources. In most surveys, Young Men respondents were asked separately about the income of themselves and their wives. However, in the 1973 and 1975 interviews, Young Men respondents were only asked about their own income; there were no questions regarding spouses.

Table 1. Older Men Income Questions

  Survey Year
Question1 66 67 68 69 71 73 75 76 78 80 81 83 90
Wage &salary * *   * * * * * * * * * *
Business income * *   * * * * * * * * * *
Farm income * *   * * * * * * * * * *
Interest, dividends * *   * * * * * * * * * *
Rental income * *   * *     *     *   *
Social Security * *   * * * * * * * * * *
Pension income * *   * * * * * * * * * *
Unemployment Compensation * *   * *     *     * * *
Workers' Compensation * *   * *     *     *    
Disability income * *   * *     *     *   *
Welfare (AFDC) * *   * * * * * * * * * *
Food Stamps * *   * *     * * * * * *
Other income * *   * * * * * * * * * *
Assistance from relatives                     * * *
Total family income     *   * * *           *
Ability to get along on income                 * * * * *
 
1 All income categories are not asked as separate questions in all years; categories were most often combined in telephone surveys.

Table 2. Young Men Income Questions

  Survey Year
Question1 66 67 68 69 70 71 73 75 76 78 80 81
Wage &salary * * * * * * * * * * * *
Business income * * * * * * * * * * * *
Farm income                       *
Interest, dividends * * * * * * * * * * * *
SSI                 *     *
Unemployment Compensation * * * * * * * * * * * *
Workers' Compensation                       *
Disability income                       *
Welfare (AFDC) * * * * * * * * * * * *
Food Stamps               * * * * *
Inheritance, gifts, prizes                 *      
Assistance from relatives                   * *  
Total family income * * * * * * * * * * * *
Ability to get along on income                   * * *
                         
1 All income categories are not asked as separate questions in all years; categories were most often combined in telephone surveys.

Assets

Respondents have periodically been asked a full set of asset and liability questions. Table 3 depicts the questions pertaining to assets by survey year; note that 1968 mail survey of Older Men and all telephone surveys are omitted from the table because no asset questions were asked in those surveys. When respondents were asked the full selection of questions, they provided information on the value and mortgage of their home, cash assets, business and farm activity, vehicles, and other debts. In several years, respondents were also asked to rate their overall financial position as better, worse, or about the same as the previous year.

Table 3. Older and Young Men Asset Questions

  Older Men Survey Years Young Men Survey Years
Question 66 69 71 76 81 90 66 67 68 69 70 71 76 81
Own home/apartment * * * * * * *       * * * *
Market value of property * * * * * * *       * * * *
Amount owed on property * * * * * * *       * * * *
Have estate/trust           *                
Amount estate/trust           *                
Have money assets * * * * * * *       * * * *
Amount of money assets * * * * * * *       * * * *
Have savings bonds * * * * * * *       * * * *
Amount of savings bonds * * * * * * *       * * * *
Have stocks/bonds * * * * * * *       * * * *
Value of stocks/bonds * * * * * * *       * * * *
Have IRA/Keogh/401k/life insurance           *                
Amount IRA/Keogh/401k/life insurance           *                
People owe you money * * * * * *               *
Amount owed to you * * * * * *               *
Own farm/business/real estate * * * * * *         * * * *
Market value farm/business/real estate * * * * * *         * * * *
Amount debts farm/business/real estate * * * * * *         * * * *
Own vehicles * * * * * * *       * * * *
Owe any money on vehicles *   * * * * *       * * *  
Amount owe on vehicles *   * * * * *       * * *  
Market value of vehicles     * * * *         * * *  
Make/model/year of vehicles * * *       *       * *    
Owe money to creditors * * * * * * *       * * * *
Amount owed to creditors * * * * * * *       * * * *
Received inheritance/life insurance       * *                  
Better/worse financially   * * *   *   * * * * *    

 

User Notes

A number of respondents have wives or parents/children in the other NLS Original Cohorts. If the respondent is part of a multiple respondent household, researchers may be able to compare the respondent's income and asset information with that provided by other members of his family. (For more information on the possible linkages, users should refer to the "Household Composition" section.) Using the husband-wife pairs may provide a more complete picture of a respondent's available resources, while the parent-child pairs provide researchers with information on how income and assets are propagated across generations.