NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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R van. Ooijen

University of Groningen
P.O. Box 800
9700 AV Groningen
The Netherlands
https://www.rug.nl/staff/r.van.ooijen/

E-Mail: r.van.ooijen@rug.nl
Institutional Affiliation: University of Groningen

NBER Working Papers and Publications

May 2019Family and Government Insurance: Wage, Earnings, and Income Risks in the Netherlands and the U.S.
with Mariacristina De Nardi, Giulio Fella, Marike G. Knoef, Gonzalo Paz-Pardo: w25832
We document new facts on the distributions of male wages, male earnings, and household earnings and income (before and after taxes) in the Netherlands and the United States. We find that, in both countries, wages display rich dynamics, including substantial asymmetries and nonlinearities by age and previous earnings levels. Individual-level male wage and earnings risk is relatively high for younger and older people, and for those in the lower and upper parts of the income distribution. In the Netherlands, the behavior of hours and family labor supply have noticeable effects on earnings persistence and on the skewness and kurtosis of wage changes, but government transfers are a major source of insurance. Instead, the role of family insurance is much larger in the U.S. and also affects the s...
 
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