equivalent household income. Permanent and transitory variances of male income over the period 1984-2008 are estimated for Old … German Laender in order to determine their importance to income dynamics. To uncover the role of the welfare state in … smoothening earnings shocks we compute different income concepts reaching from gross earnings to net equivalent household income …

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 …

detailed analysis of German top incomes is conducted, beginning with a review of selected income distribution measures which … indicate that high incomes have played a significant role for income divergence in recent years. Based on new data it is shown … that top income shares have indeed increased substantially in the recent past, a process which is mainly due to a relative …

Subjective well-being (SWB) is generally argued to rise with relative income. However, direct evidence is scarce on … whether and how intensively individuals undertake income comparisons, to whom they relate, and what they perceive their … relative income to be. In this paper, novel data with direct information on income comparison intensity and perceived relative …

income comparisons against a wide range of potential comparison groups, enabling us to investigate a broader range of … subjects to report (a) how their income compares to various groups, such a co-workers, friends, and neighbours, and (b) how … important these income comparisons are to them. We find substantial gender differences, with income comparisons being much …

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 …