This paper examines whether nonlinear and non-Gaussian features of earnings dynamics are caused by hours or hourly wages. Our findings from the Norwegian administrative and survey data are as follows: (i) Nonlinear mean reversion in earnings is driven by the dynamics of hours worked rather than...

Norwegian households' levels of housing wealth have since the banking crisis of the 90s become an ever more dominant part of households' portfolios. Low interest rates and easy access to mortgages have contributed to both increasing house prices and the corresponding increase in household debt....