Income Risk Inequality: Evidence from Spanish Administrative Records

Manuel Arellano, Stéphane Bonhomme, Micole De Vera, Laura Hospido and Siqi Wei
Additional contact information
Stéphane Bonhomme: University of Chicago
Siqi Wei: CEMFI

No 2136, Working Papers from Banco de España

Abstract: 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 economy has close to perfect predictability of their income, while some face considerable uncertainty. Income risk is inversely related to income and age, and income risk inequality increases markedly in the recession. These findings are robust to a variety of specifications, including using neural networks for prediction and allowing for individual unobserved heterogeneity.

Keywords: Spain; income dynamics; administrative data; income risk; inequality (search for similar items in EconPapers)
JEL-codes: D31 E24 E31 J31 (search for similar items in EconPapers)
Pages: 98 pages
Date: 2021-09
New Economics Papers: this item is included in nep-cmp, nep-eur, nep-lma, nep-ltv and nep-mac
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Citations: View citations in EconPapers (10)

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https://www.bde.es/f/webbde/SES/Secciones/Publicac ... 21/Files/dt2136e.pdf First version, October 2021 (application/pdf)

Related works:
Journal Article: Income risk inequality: Evidence from Spanish administrative records (2022)
Working Paper: Income Risk Inequality: Evidence from Spanish Administrative Records (2021)
Working Paper: Income risk inequality: evidence from Spanish administrative records (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:wpaper:2136

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