The Nature of Household Labor Income Risk

Abstract

What is the nature of labor income risk facing households? We answer this question using detailed administrative data on household earnings from the U.S. Internal Revenue Service. By analyzing total household labor earnings as well as each member's earnings, we offer several new findings. One, households face substantially less risk than males in isolation. Second, households face roughly half the countercyclical increase in risk that males face. Third, spousal labor income ameliorates household earnings risk through both extensive and intensive margins.

Essays on households\' consumption and saving

“…Furthermore, Table A.1, in the Appendix A.1, reports a set of other quantiles. In measuring the skewness of these distributions, we follow Pruitt and Turner (2018) and consider the Kelley statistic. 17 Notice that most of the distributions have positive skewness.…”