What do data on millions of US workers reveal about lifecycle earnings dynamics?
We study individual male earnings dynamics over the life cycle using panel data on millions
of US workers. Using nonparametric methods, we first show that the distribution of earnings …
of US workers. Using nonparametric methods, we first show that the distribution of earnings …
Macroeconomics and household heterogeneity
The goal of this chapter is to study how, and by how much, household income, wealth, and
preference heterogeneity amplify and propagate a macroeconomic shock. We focus on the …
preference heterogeneity amplify and propagate a macroeconomic shock. We focus on the …
When inequality matters for macro and macro matters for inequality
We develop an efficient and easy to use computational method for solving a wide class of
general equilibrium heterogeneous agent models with aggregate shocks together with an …
general equilibrium heterogeneous agent models with aggregate shocks together with an …
The matching multiplier and the amplification of recessions
C Patterson - American Economic Review, 2023 - aeaweb.org
This paper shows that the unequal incidence of recessions in the labor market amplifies
aggregate shocks. Using administrative data from the United States, I document a positive …
aggregate shocks. Using administrative data from the United States, I document a positive …
Shocks, frictions, and inequality in US business cycles
We show how a heterogeneous agent New Keynesian (HANK) model with incomplete
markets and portfolio choice can be estimated in state space using a Bayesian approach. To …
markets and portfolio choice can be estimated in state space using a Bayesian approach. To …
Nonlinear household earnings dynamics, self-insurance, and welfare
Earnings dynamics are much richer than typically assumed in macro models with
heterogeneous agents. This holds for individual-pre-tax and household-post-tax earnings …
heterogeneous agents. This holds for individual-pre-tax and household-post-tax earnings …
Optimal automatic stabilizers
Should the generosity of unemployment benefits and the progressivity of income taxes
depend on the presence of business cycles? This paper proposes a tractable model where …
depend on the presence of business cycles? This paper proposes a tractable model where …
Climbing and falling off the ladder: Asset pricing implications of labor market event risk
L Schmidt - Available at SSRN 2471342, 2022 - papers.ssrn.com
Administrative earnings data reveal that households are exposed to large, countercyclical
idiosyncratic tail risks in labor earnings. I illustrate how these risks affect asset prices within …
idiosyncratic tail risks in labor earnings. I illustrate how these risks affect asset prices within …