asset returns and an investor's labor income. Our graphical approach easily handles income shocks that are partly hedgeable …-level components of individual income innovations estimated from repeated cross sections of the Current Population Survey. We … returns, and returns on several other assets. Aggregate equity returns are uncorrelated with the occupation-level income …

We show that firms' idiosyncratic volatility obeys a strong factor structure and that shocks to the common factor in … idiosyncratic volatility (CIV) are priced. Stocks in the lowest CIV-beta quintile earn average returns 5.4% per year higher than … linking the CIV factor to income risk faced by households. These three facts are consistent with an incomplete markets …

the importance of income as a component of returns, focusing primarily on the potential for capital gains.In 2004, the … Brandes Institute published "Examining the Income Component of Total Returns," in conjunction with Professor Elroy Dimson of … the London Business School. This analyzed public market data as far back as 1926 to evaluate the impact income had on …