Blundell, Richard; Pistaferri, Luigi; Saporta-Eksten, Itay - Institute for the Study of Labor (IZA) - 2012
incorporates household consumption and family labor supply decisions. We derive analytical expressions based on approximations for …In this paper we examine the link between wage inequality and consumption inequality using a life cycle model that … the dynamics of consumption, hours, and earnings of two earners in the presence of correlated wage shocks, non …