PSID Data Preparation

PSID Data Preparation# modules



This script takes PSID data created from psid_download.R and: 1) Creates variables at the “tax filing unit” (equal to family

unit in PSID since there is no info on the filing status chosen).

  1. Selects a sample of observations to work with (e.g., dropping

    very old, very low income, etc.).

  2. Computes a measure of lifetime income and places each household

    into a lifetime income percentile group


data (str) – path to RData file with PSID data


household level data with lifetime

income groups defined

Return type:

panel_li (Pandas DataFrame)