We develop a new approach to the decomposition of income risk within a non- stationary model of intertemporal choice. The approach allows for changes in in- come risk over the life cycle and across the business cycle, allowing for mixtures of persistent and transitory components in the dynamic...

We study household income inequality in both Great Britain and the United States and the interplay between labour market earnings and the tax system. While both Britain and the US have witnessed secular increases in 90/10 male earnings inequality over the last three decades, this measure of...

We estimate a dynamic model of employment, human capital accumulation - including education, and savings for women in the UK, exploiting tax and benefit reforms, and use it to analyze the effects of welfare policy. We find substantial elasticities for labor supply and particularly for lone...

We use British birth cohort panel data to examine the impact that degree level qualifications and other higher education qualifications have on the earnings of individuals in the medium to longer term. We compare the outcomes of these individuals with those of individuals who had the prospect of...

In-work benefit reforms seek to reduce poverty and promote employment among low-income families. Using evidence from similar policies in the USA and Canada, this paper reviews the likely impact of recent UK reforms. The focus is on employment and hours. In particular, the paper examines the...