document an economically significant correlation of incentive pay with both the level and volatility of bank trading income … banking. Moreover, pre-crisis incentive pay appears too strong for an optimal trade-off between trading income and risk which … maximizes the NPV of trading income …

can get an estimate of the taxable income elasticity from the bunching pattern around a kink point. The bunching estimator … cannot identify the taxable income elasticity when the functional form of the distribution of preference heterogeneity is … unknown. We find that an observed distribution of taxable income around a kink point in a budget set can be consistent with …

We estimate household equivalence scales using income satisfaction data from the German Socio-Economic Panel. We extend … previous studies applying this approach by taking reference income into account. This allows separating needs-based from … reference effects in the determination of income satisfaction. We show that this adjustment helps to overcome a bias causing an …

with ten to forty years of observations from the Panel Survey of Income Dynamics. We find that neither is strongly …

their lives. Much of the early research concluded that the role of income in determining well-being was limited, and that … only income relative to others was related to well-being. In this paper, we review the evidence to assess the importance of … absolute and relative income in determining well-being. Our research suggests that absolute income plays a major role in …

effect of being elected on subsequent income. Getting elected to parliament increases annual earnings initially by about €20 …

The question of whether there is a connection between income and psychological well-being is a long-studied issue … higher levels of income later in life. We focus on earnings approximately one decade after the person's well-being is … happiness. We consider how psychological well-being may influence income. Sobel-Goodman mediation tests reveal direct and …