Gorodnichenko, Yuriy; Sabirianova Peter, Klara; … - Institute for the Study of Labor (IZA) - 2009
Monitoring Survey (RLMS) for 1994-2005. We analyze cross-sectional income and consumption inequality and find that inequality … decreased during the 2000-2005 economic recovery. The decrease appears to be driven by falling volatility of transitory income … shocks. The response of consumption to permanent and transitory income shocks becomes weaker later in the sample, consistent …
