Top income inequality in the United States has increased considerably within occupations. This phenomenon has led to a … search for a common explanation. We instead develop a theory where increases in income inequality originating within a few … provides non-divisible services to consumers, with physicians our prime example. Examining local income inequality across U …

We review research on the dynamics and distribution of individual earnings and family income. We start with univariate … earnings models, which dominate the literature and are often used as the exogenous component of family income in structural … family income that integrate individual earnings, marriage (accounting for marital sorting), and earnings of a spouse (if …

the post-tax income distribution in the US. First, all incomes are cyclical and co-move with the business cycle. Second …, lower and higher income individuals experience significantly larger fluctuations across the business cycle than middle-income … income individuals. With the financial crisis starting in 2009 and its repercussions, the volatilities are again increasing …

We estimate an income process that is consistent with key facts on individual income risk and its variation over the … business cycle. In particular, the estimated process generates income fluctuations that display (i) flat and acyclical variance … over the life cycle, all consistent with the US data. Furthermore, the income process captures the predictable nature of …

Using detailed micro-data, this paper documents that households with lower income risk (and higher income levels …) exhibit a higher Marginal Propensity to Consume (MPC) in response to transitory income shocks, all else being equal. This … designed to account for the empirically observed negative correlation between income levels and income risk. This interaction …

time periods. Using Michigan Panel Study of Income Dynamics data and a number of different identification strategies, we …

-cycle insurance impact is much smaller. At the mean, a positive hours shock of one standard deviation raises life-time income by 10 …