Currently the PUF clones in the ECPS use race/ethnicity from the CPS but income disconnected from that. As a result, we dilute the racial differences in income that show up in the CPS. For example, our baseline poverty estimate in the CPS shows Blacks with ~1.9x the poverty rate of Whites, while the ECPS is ~1.5x.
To remedy this, we can target the earnings distribution by race and ethnicity as it shows up in the CPS.
Currently the PUF clones in the ECPS use race/ethnicity from the CPS but income disconnected from that. As a result, we dilute the racial differences in income that show up in the CPS. For example, our baseline poverty estimate in the CPS shows Blacks with ~1.9x the poverty rate of Whites, while the ECPS is ~1.5x.
To remedy this, we can target the earnings distribution by race and ethnicity as it shows up in the CPS.