This paper establishes new evidence on the cyclical behaviour of household income risk in Great Britain and assesses …. We then estimate how income risk, measured by the variance and the skewness of the probability distribution of shocks to … the role of social insurance policy in mitigating against this risk. We address these issues using the British Household …

increased risk that they encounter a sharp fall in their wages. People who tend to be particularly affected are the low … measures that aim to avoid credit overexpansion are two policies that can improve the links of private debt with labour income … growth and risk. Overall, the evidence in this paper points to finance as one factor behind wage stagnation and the social …

This paper documents earnings dynamics over the life-cycle and income level using a large administrative database from … normality. For the bottom earners, large income changes are driven equally by hours and wages which is consistent with …, there is no evidence of an added-worker effect but government insurance and income pooling can mitigate the pass-through of …

We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

, we estimate nonparametric impulse response functions and find important asymmetries: positive changes for high-income … individuals are quite transitory, whereas negative ones are very persistent; the opposite is true for low-income individuals …

We investigate cyclicality of variance and skewness of household labor income risk using PSID data. There are five main … cyclicality of hourly wages is muted, suggesting that head's labor income risk is mainly coming from the volatility of hours … volatility of household labor income risk. Meanwhile, government taxes and transfers are found to mitigate the level and …

This paper studies the nature of earnings dynamics in Australia, using the Household, Income and Labour Dynamics in … earnings risk. Government insurance embedded in the targeted transfer system is more important in mitigating the dispersion of … earnings shocks, whereas family insurance via income pooling and adjustment of secondary earners' labour market activities is …

In this paper we use administrative data from the social security to study income dynamics and income risk inequality … in Spain between 2005 and 2018. We construct individual measures of income risk as functions of past employment history …, income, and demographics. Focusing on males, we document that income risk is highly unequal in Spain: more than half of the …

Earnings risk is central to economic analysis. While this risk is essentially subjective, it is typically inferred from … earnings risk. We pay particular attention to the expected impact of job transitions on earnings. A link with administrative … data provides multiple credibility checks. It also shows subjective earnings risk to be far lower than its administratively …

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 …