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, https://www.uchicago.edu/
Siqi Wei: CEMFI, Centro de Estudios Monetarios y Financieros, https://www.cemfi.es/

Working Papers from CEMFI

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)
Date: 2021-09
New Economics Papers: this item is included in nep-cmp, nep-eur, nep-lma, nep-ltv, nep-mac and nep-rmg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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https://www.cemfi.es/ftp/wp/2109.pdf (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:cmf:wpaper:wp2021_2109

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