Guvenen, Fatih; Karahan, Fatih; Ozkan, Serdar; Song, Jae - 2015
We study the evolution of individual labor earnings over the life cycle, using a large panel data set of earnings … response functions of earnings shocks and find important asymmetries: Positive shocks to high-income individuals are quite … transitory, whereas negative shocks are very persistent; the opposite is true for low-income individuals. Finally, we use these …