The pass-through of uncertainty shocks to households

• 成果类型: Article
• 署名作者: Di Maggio, Marco; Kermani, Amir; Ramcharan, Rodney; Yao, Vincent; Yu, Edison
• 署名单位: Harvard University; National Bureau of Economic Research; University of California System; University of California Berkeley; University System of Georgia; Georgia State University; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2022.03.005
• 发表日期: 2022
• 页码: 85-104
• 关键词: Employment risk; consumption; insurance

摘要

Using new employer-employee matched data, this paper investigates the impact of uncertainty, as measured by idiosyncratic stock market volatility, on individual outcomes. We find that firms provide at best partial insurance to their workers. Increased firm-level uncertainty reduces total compensation, especially variable pay, and workers reduce their durable goods consumption in response. Such shocks also lead to greater financial fragility among lower-income earners. Constructing a new county-level uncertainty shock, we find that local uncertainty shocks reduce county-level durable consumption. Taken together, these findings show that uncertainty shocks can significantly affect local economic activity through households' consumption and savings decisions.(c) 2022 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )