Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Earnings Risk in the Household: Evidence from Millions of US Tax Returns†

Earnings Risk in the Household: Evidence from Millions of US Tax Returns† AbstractUsing detailed Internal Revenue Service administrative data on millions of households, we find that households effectively insure against much of the risk facing primary earners. We show that households face less risk than males alone, and households face roughly half the countercyclical risk increase. As a result of these risk differences, household certainty equivalent earnings are 19 percent higher than for males alone, and household certainty equivalent earnings fall by about half as much during recessions. To facilitate related research, we make available the aggregated data used in our analysis. (JEL D12, D13, E32, G51) http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png American Economic Review: Insights American Economic Association

Earnings Risk in the Household: Evidence from Millions of US Tax Returns†

Loading next page...
 
/lp/american-economic-association/earnings-risk-in-the-household-evidence-from-millions-of-us-tax-b940qctOWu
Publisher
American Economic Association
Copyright
Copyright © 2020 © American Economic Association
ISSN
2640-205X
eISSN
2640-2068
DOI
10.1257/aeri.20190096
Publisher site
See Article on Publisher Site

Abstract

AbstractUsing detailed Internal Revenue Service administrative data on millions of households, we find that households effectively insure against much of the risk facing primary earners. We show that households face less risk than males alone, and households face roughly half the countercyclical risk increase. As a result of these risk differences, household certainty equivalent earnings are 19 percent higher than for males alone, and household certainty equivalent earnings fall by about half as much during recessions. To facilitate related research, we make available the aggregated data used in our analysis. (JEL D12, D13, E32, G51)

Journal

American Economic Review: InsightsAmerican Economic Association

Published: Jun 1, 2020

There are no references for this article.