Measuring the income process in Italy

Authors
Publication date 2012
Journal Rivista di politica economica
Volume | Issue number 102 | 1
Pages (from-to) 175-196
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract We use a panel dataset from the SHIW survey to study the features of household income in Italy. Income is described as a combination of deterministic and random components. In aggregate deterministic income grows at an average annual rate of 1.8% net of inflation, shocks feature stationarity, and the variance of persistent and transitory shocks is around 0.03. Income grows more quickly when the head is more highly educated; the volatility of shocks is sensitive to education and the job sector of the head. Only for public sector workers we find evidence of non-stationary shocks.
Document type Article
Language English
Permalink to this page
Back