The Nature of Household Labor Income Risk

Seth Pruitt () and Nick Turner

No 2018-034, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: What is the nature of labor income risk facing households? We answer this question using detailed administrative data on household earnings from the U.S. Internal Revenue Service. By analyzing total household labor earnings as well as each member's earnings, we offer several new findings. One, households face substantially less risk than males in isolation. Second, households face roughly half the countercyclical increase in risk that males face. Third, spousal labor income ameliorates household earnings risk through both extensive and intensive margins.

Keywords: Earnings risk; Household labor dynamics (search for similar items in EconPapers)
JEL-codes: D13 E24 E32 J21 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2018-05-15
New Economics Papers: this item is included in nep-dem, nep-lma and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2018-34

DOI: 10.17016/FEDS.2018.034

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