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 …

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 …

We use British panel data to determine the exogenous impact of income on a number of individual health outcomes … allow us to make causal statements regarding the effect of income on health, as the amount won by winners is largely … exogenous. Positive income shocks have no significant effect on general health, but a large positive effect on mental health …

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 …

income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study …: Satisfaction with household income and the income evaluation question as developed by Van Praag. It can be shown that satisfaction … with income is more affected by ex ante than by ex post volatility of income. The ordinal version of the Van Praag approach …

frictions that allows us to distinguish between different sources of risk and to estimate their effects. The sources of risk are … heterogeneity. Our model allows for four main social insurance programmes. In contrast to simpler models that attribute all income …. Estimates of productivity risk, once we control for employment risk and for individual labour supply choices, are substantially …

Analysing the US Panel Study of Income Dynamics, we present a new empirical method to investigate the extent to which … households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach – termed a … risk, and is unique in recovering for, any given risky asset class, the shares that are reallocated to a safer asset …

consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …

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 …

We analyze optimal taxation of labor and capital income in a life-cycle framework with idiosyncratic income risk. We … independent of the social welfare function and determined by the degree of income risk and risk aversion. The optimal linear … provide a novel decomposition of labor income tax formulas into a redistribution and an insurance component. The latter is …