, we estimate nonparametric impulse response functions and find important asymmetries: positive changes for high-income … individuals are quite transitory, whereas negative ones are very persistent; the opposite is true for low-income individuals …

response functions of earnings shocks and find important asymmetries: Positive shocks to high-income individuals are quite … transitory, whereas negative shocks are very persistent; the opposite is true for low-income individuals. Finally, we use these …