This paper describes the transmission of income inequality into consumption inequality and in so doing investigates the … degree of insurance to income shocks. It combines panel data on income from the PSID with consumption data from repeated CEX … cross-sections and distinguishes between permanent and transitory income shocks. We find some partial insurance of permanent …

stratified by education. Our estimates strongly reject the consumption insurance model and suggest that households smooth income …

insurance (SSDI). Health affects individuals' productivity, SSDI access, disutility from work, mortality, and medical expenses …. Calibrating the model to the United States, we find that health inequality is an important source of lifetime earnings inequality … words, the SSDI program is an important contributor to lifetime earnings inequality. Despite this, we show that it is ex …

stratified by education. Our estimates strongly reject the consumption insurance model and suggest that households smooth income …

decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

The life-cycle patterns of consumption, wage and hours inequality observed in U.S. cross-section data are commonly …

Was the increase in income inequality in the US due to permanent shocks or merely to an increase in the variance of …-cycle changes, transitory and permanent shocks and estimate the contribution of each to total inequality. Our model fits the joint … evolution of consumption and income inequality well and delivers two main results. First, we find that permanent changes in …