Consumption Inequality and Family Labor Supply

• 成果类型: Article
• 署名作者: Blundell, Richard; Pistaferri, Luigi; Saporta-Eksten, Itay
• 署名单位: University of London; University College London; University of London; London School Economics & Political Science; Stanford University; Center for Economic & Policy Research (CEPR); National Bureau of Economic Research; Tel Aviv University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20121549
• 发表日期: 2016
• 页码: 387-435
• 关键词: life-cycle model; partial insurance; commodity demands; self-insurance; income; earnings; uncertainty; choices; taxes; RISK

摘要

We examine the link between wage and consumption inequality using a life-cycle model incorporating consumption and family labor supply decisions. We derive analytical expressions for the dynamics of consumption, hours, and earnings of two earners in the presence of correlated wage shocks, nonseparability, progressive taxation, and asset accumulation. The model is estimated using panel data for hours, earnings, assets, and consumption. We focus on family labor supply as an insurance mechanism and find strong evidence of smoothing of permanent wage shocks. Once family labor supply, assets, and taxes are properly accounted for there is little evidence of additional insurance.