Empirical evidence in the study of labor markets: Opportunities and challenges for a new household survey

Many of the key issues confronting modern societies are closely tied to labor market outcomes: What factors contribute to the persistence of poverty and deprivation? Why does long-term unemployment damage re-entry prospects into labor markets? Along which dimensions is economic inequality increasing, and to what extent should we be concerned about these trends? To what degree is inequality transmitted within families across generations? Why does race play such an important role in economic success in the U.S.? How are male-female differences in economic outcomes shifting over time? In this essay we suggest that a well-designed survey that follows individuals within households over a long horizon is crucial for sorting some facets of these questions. We provide some thoughts about how a future household survey should be designed for the purpose facilitating high-value research in empirical labor economics.