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 dynamics of male wages and earnings, household earnings, and before- and after-tax income in the Netherlands and the United States. We find that, in both countries, earnings display rich dynamics, including substantial asymmetries and nonlinearities by age and previous earnings levels. Most of these dynamics, particularly in the Netherlands, are related to fluctuations in hours worked rather than in wages. Individual-level male wage and earnings risk is relatively high at the beginning and end of one’s working life, and for those in the lower and upper parts of the income distribution. In the Netherlands, government transfers are a major source of insurance. They have notable effects on the standard deviation, skewness and kurtosis of income changes. In the U.S...
 
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