consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and … income process. The empirical application of our framework using data on individual incomes from Mexico provides striking …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …

-employment ; wage-employment ; income distribution ; income risk ; income skew ; income variance ; occupational choice ; labor market … wages given up as an employee. Information on income from self-employment is of inferior quality and this is not just a … that it is not only the location of an income distribution that matters and that dispersion and (a)symmetry should not be …

; income risk ; limited information variances …In the context of income dynamics, we investigate whether aspects of agents' superior information relative to the … econometrician cannot observe idiosyncratic shocks to both permanent and transitory components of income. In this case perceptions of …

In this paper, we empirically assess the causal relationship between trade and individual income risk and study the … from 1976 to 2012. Our estimates suggest substantial heterogeneity in labor income risk across workers in different entry … exports (per worker) are strongly and causally related to income risk: Imports increase risk and exports decrease risk, and …

In this paper, we develop and numerically solve a model of idiosyncratic labour income and idiosyncratic interest rates … to predict the evolution of a wealth distribution over time. Stochastic labour income follows a deterministic growth …

pivotal role of risk attitudes and the schooling gradient of earnings risk. We use Spanish data to document the gradient and … to estimate individual response to earnings risk in deciding on attending university education, by measuring risk as the … risk aversion, the response may be reversed to positive. …

earnings, capital income and net worth, we find evidence for excess returns on investment among the highest income groups … high correlation between earnings and wealth in the data, as well as the fact that earnings are a major source of income … for top income and wealth groups. …

We study workers' idiosyncratic earnings risk over the life-cycle using a German administrative data set. Positive and … incomplete markets model. Moreover, age-varying risk implies a linear increase in consumption inequality late in working life. …

uncertainty of remittance income inflows affects the accumulation of human, physical and financial assets of Mexican households … income hypothesis and theories of precautionary saving, a one standard deviation increase in the uncertainty of remittance … income raises the likelihood of household spending on asset accumulation by about 2 percentage points while raising the share …