We develop a new approach to the decomposition of income risk within a nonstationary model of intertemporal choice. The … approach allows for changes in income risk over the life-cycle and with the business cycle. It requires only repeated cross …-section data and can allow for mixtures of persistent and transitory components in the dynamic process for income. Evidence from a …

This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …. Individual income is assumed to follow a stochastic process with two (unobserved) components, an i.i.d. component representing … measurement error or transitory income shocks and an AR(1) component representing persistent changes in income. We use a tractable …

Many literatures investigate the causal impact of income on economic outcomes, for example in the context of … industry affiliation as an instrument for income. We demonstrate that industry affiliation is correlated with fixed individual …

illustrate that capital income (CI = return on financial investments) and imputed rent (IR = return on investments in owner … regulation by the European Commission, (EC) which is currently being used to harmonize income measurement for the European … Statistics on Income and Living Conditions (EU-SILC) in Europe. While both of these components represent some kind of return on …

the Swedish income tax schedule. Using population-wide register data from the Swedish military enlistment and …