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 …

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 document facts about earnings and disposable income inequality and growth in Denmark in the period 1987-2016. During … excess kurtosis. Denmark has a progressive income tax system with a high level of taxes and a relatively generous and heavily … subsidized unemployment insurance system. Consequently, the dispersion of log disposable income growth is much smaller than for …

We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades …. Combining personal income tax and social security data allows us-for the first time-to offer a complete picture of the … German labor market and increasing labor supply. In the second part of the paper, we study the distribution of total income …

In this paper, we use administrative data from the social security to study income dynamics and income risk inequality … in Spain between 2005 and 2018. We construct individual measures of income risk as functions of past employment history …, income, and demographics. Focusing on males, we document that income risk is highly unequal in Spain: More than half of the …

among foreign‐born workers, reflecting weaker labor market attachment and high risk of large negative shocks for low‐income … the generosity and usage of benefit programs declined over time, we find stronger earnings growth among low‐income workers …

This paper is part of the Global Repository of Income Dynamics (GRID) project cross‐country comparison of earnings …

Lower intergenerational income mobility for blacks is a likely cause behind the persistent interracial gap in economic … status in the United States. However, few studies have analyzed black-white differences in intergenerational income mobility … traditional transition probability of movement across income quantiles. We then introduce a new measure of upward mobility which …

Idiosyncratic labor incomes are typically modeled either by stochastic processes with heterogeneous income profiles … (HIPs) or restricted income profiles (RIPs). The HIP assumes that individual labor income grows deterministically at an … unobserved rate and contains a persistent but stationary component, while the RIP assumes that income contains a random walk, a …

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 …