The presentation is about the nature and how to clean errors in occupational coding in order to measure patterns of occupational mobility (US, UK and Canada). Furthermore it is shed light on how occupational mobility matters for cyclical earnings inequality (based on Carrillo-Tudela, Visschers and Wiczer, 2019), unemployment and its duration distribution (based on Carrillo-Tudela and Visschers, 2019) and cleansing and sullying effects of the business cycle (based on Carrillo-Tudela, Sumerfield and Visschers, 2019).
Veranstaltungsformat: Online
Marginal Propensities to Consume Before and After the Great Recession
Using a quasi maximum likelihood approach for a semi-structural model, we find highly precise and distinct estimates of consumption responses to idiosyncratic income shocks for different groups of households. Homeowners stratified by liquid wealth exhibit the most dispersion in their marginal propensities to consume. Time-varying estimates support strong patterns of heterogeneity by homeownership status and balance sheet liquidity, with economically and statistically significant increases in the sensitivity of transitory consumption for homeowners, especially those with lower liquid wealth, following the collapse in house prices with the Great Recession. These findings support consumption theories that include housing as an illiquid asset.