Working Paper
Cyclical Labor Income Risk
Nakajima, Makoto; Smirnyagin, Vladimir (2019-09-16)
We investigate cyclicality of variance and skewness of household labor income risk using PSID data. There are five main findings. First, we find that head?s labor income exhibits countercyclical variance and procyclical skewness. Second, the cyclicality of hourly wages is muted, suggesting that head?s labor income risk is mainly coming from the volatility of hours. Third, younger households face stronger cyclicality of income volatility than older ones, although the level of volatility is lower for the younger ones. Fourth, while a second earner helps lower the level of skewness, it does not ...
Working Papers , Paper 19-34

Working Paper
Cyclical Labor Income Risk
Nakajima, Makoto; Smirnyagin, Vladimir (2019-08-05)
We investigate cyclicality of variance and skewness of household labor income risk using PSID data. There are five main findings. First, we find that head's labor income exhibits countercyclical variance and procyclical skewness. Second, the cyclicality of hourly wages is mutted, suggesting that head's labor income risk is mainly coming from the volatility of hours. Third, younger households face stronger cyclicality of income volatility than older ones, although the level of volatility is lower for the younger ones. Fourth, while a second earner helps lower the level of skewness, it does not ...
Opportunity and Inclusive Growth Institute Working Papers , Paper 22