Income and Wealth Volatility: Evidence from Italy and the U.S. in the Past Two Decades

Conchita D'Ambrosio, Giorgia Menta and Edward N. Wolff

No 26527, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Income volatility and wealth volatility are central objects of investigation for the literature on income and wealth inequality and dynamics. Here we analyse the two concepts in a comparative perspective for the same individuals in Italy and the U.S. over the last two decades. Contrary to our expectations, we find that in both countries wealth volatility reaches significantly higher values than income volatility, the effect being mostly driven by changes in the market value of real estate assets. We also show that there is more volatility in both dimensions in the United States and that the overall trend in both countries is increasing over time. We conclude by exploring volatility in consumption.

JEL-codes: D31 (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-ore
Note: LS
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Citations: View citations in EconPapers (1)

Published as Giorgia Menta & Edward N. Wolff & Conchita D’ Ambrosio, 2021. "Income and wealth volatility: evidence from Italy and the U.S. in the past two decades," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(2), pages 293-313, June.

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Journal Article: Income and wealth volatility: evidence from Italy and the U.S. in the past two decades (2021)
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