WAGE VOLATILITY AND CHANGING PATTERNS OF LABOR SUPPLY

• 成果类型: Article
• 署名作者: Hong, Jay H.; Seok, Byoung Hoon; You, Hye Mi
• 署名单位: Seoul National University (SNU); Ewha Womans University; Hanyang University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12363
• 发表日期: 2019
• 页码: 595-630
• 关键词: consumption inequality; precautionary savings; TRENDS; income; PARTICIPATION; EMPLOYMENT; earnings; RISK

摘要

Over the past few decades, the skilled-unskilled hours differential for U.S. men increased when the skill premium rose sharply, in contrast with dominant income effects. Based on PSID data, we show that over the 1967-2000 period, skilled men experienced a three times larger increase in wage volatility than unskilled men. With the rise in wage volatility, our general equilibrium incomplete markets model generates a 2.7 hours increase in the hours differential whereas it increased by 1.4 hours in the data. We find that hours adjustments are important for self-insurance in the short run, whereas precautionary savings play a crucial role eventually.