Table 2.
Distribution of replacement rates robustness.
| Percentile |
||||
|---|---|---|---|---|
| 25th | 50th | 75th | Share over 1 | |
| Main estimate | 103% (1.7) | 145% (1.6) | 195% (3.1) | 76% (0.7) |
| Comprehensive replacement rate | ||||
| Include non-wage compensation | 85% (0.9) | 125% (1.2) | 184% (2.5) | 65% (0.7) |
| Account for payroll tax | 111% (1.8) | 157% (1.7) | 211% (3.4) | 80% (0.6) |
| Account for payroll tax and include non-wage compensation | 91% (1.0) | 134% (1.3) | 200% (2.7) | 69% (0.7) |
| Statutory replacement rate | ||||
| Include self-employment income | 102% (1.6) | 144% (1.5) | 195% (3.1) | 76% (0.7) |
| Drop tipped occupations | 94% (1.4) | 135% (1.4) | 177% (1.8) | 72% (0.8) |
| Include PUA recipients | 105% (1.7) | 149% (1.6) | 202% (3.1) | 77% (0.7) |
This table shows how the distribution of replacement rates changes under alternative assumptions. The top row shows our main estimate of statutory replacement rates. Standard errors in percentage points are in parentheses. For example, the median replacement rate is 145% with a standard error of 1.4 percentage points. The first three rows of robustness checks show the effects of incorporating non-wage compensation and payroll tax. The third row is our preferred comprehensive measure of replacement rates. The fourth row drops tipped workers, for whom the CPS may understate earnings, thereby leading to an over-estimate of replacement rates. The fifth row includes PUA recipients. The sixth row includes self-employment income in the measure of earnings.