Income and Consumption Risk: Evidence from France

Pistolesi,

doi:10.15609/annaeconstat2009.113-114.347

Cited by 2 publications

(2 citation statements)

References 19 publications

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“…These two possibilities have different repercussions on the inequalities in terms of consumption (Blundell & Preston, 1998;Pistolesi, 2014). Great uncertainty on future incomes thus limits the ability of agents to smooth their consumption over time, and can incite them to save more.…”

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confidence: 99%

The individual dynamics of wage income in France during the crisis

Pora¹,

Wilner²

2017

Ecostat

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The uncertain nature of future income limits the ability of agents to smooth their consumption over time. Variation in this uncertainty can thus bring about variation in well-being. We study the evolutions of the uncertainty on wage income in France before and over the course of the crisis of 2008 drawing on longitudinal administrative data. Using a non-parametric method, we estimate the magnitude and form of this uncertainty and show that they depend on past wage income. This uncertainty is broken down into wage and working time, and according to the mobility of the wage earners. During the crisis, the magnitude of this uncertainty on future wage income increases slightly, and its downward asymmetry is stronger at both ends of the wage income scale: with this uncertainty, unfavourable evolutions have a bigger impact during the crisis than in the preceding period. This is explained by a heightened probability of unfavourable individual evolutions in terms of working time for the lowest-paid workers, and in terms of wage for the highest-paid. Mobility is more frequent during the crisis but the uncertainty associated with it is lower than over the preceding years.

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confidence: 99%

The individual dynamics of wage income in France during the crisis

Pora¹,

Wilner²

2017

Ecostat

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“…Essentially because it has a direct impact on consumption and saving behaviors, as pointed out by Blundell and Preston (1998), Parker and Preston (2005), Blundell, Pistaferri, and Preston (2008) and Arellano, Blundell, and Bonhomme (2017), not pretending to be exhaustive. A better understanding of income uncertainty -especially its impact on household decisions -would help fill in the gap between income and consumption inequalities (Pistolesi, 2014). In particular, a high volatility prevents individuals from smoothing their consumption: inequality results therefore in inefficient allocations.…”

Section: Literature Reviewmentioning

confidence: 99%

A decomposition of labor earnings growth: Recovering Gaussianity?

Pora

Wilner

2020

Labour Economics

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Income and Consumption Risk: Evidence from France

Cited by 2 publications

References 19 publications

The individual dynamics of wage income in France during the crisis

The individual dynamics of wage income in France during the crisis

A decomposition of labor earnings growth: Recovering Gaussianity?

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