Income and wealth volatility: evidence from Italy and the U.S. in the past two decades

Giorgia Menta; Edward N. Wolff; Conchita D’ Ambrosio

doi:10.1007/s10888-020-09473-4

Income and wealth volatility: evidence from Italy and the U.S. in the past two decades

Giorgia Menta, Edward N. Wolff, Conchita D’ Ambrosio

Research output: Contribution to journal › Article › peer-review

Abstract

Income volatility and wealth volatility are central objects of investigation for the literature on income and wealth inequality and dynamics. Here we analyse the two concepts in a comparative perspective for the same individuals in Italy and the U.S. over the last two decades. We find that in both countries wealth volatility reaches significantly higher values than income volatility, the effect being mostly driven by changes in the market value of real estate assets. We also show that there is more volatility in both dimensions in the U.S. and that the overall trend in both countries is increasing over time. We conclude by exploring volatility in consumption.

Original language	English (US)
Journal	Journal of Economic Inequality
DOIs	https://doi.org/10.1007/s10888-020-09473-4
State	Accepted/In press - 2021

Keywords

Income volatility
PSID
SHIW
Wealth volatility

ASJC Scopus subject areas

Sociology and Political Science
Economics, Econometrics and Finance(all)
Organizational Behavior and Human Resource Management

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10.1007/s10888-020-09473-4

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title = "Income and wealth volatility: evidence from Italy and the U.S. in the past two decades",

abstract = "Income volatility and wealth volatility are central objects of investigation for the literature on income and wealth inequality and dynamics. Here we analyse the two concepts in a comparative perspective for the same individuals in Italy and the U.S. over the last two decades. We find that in both countries wealth volatility reaches significantly higher values than income volatility, the effect being mostly driven by changes in the market value of real estate assets. We also show that there is more volatility in both dimensions in the U.S. and that the overall trend in both countries is increasing over time. We conclude by exploring volatility in consumption.",

keywords = "Income volatility, PSID, SHIW, Wealth volatility",

author = "Giorgia Menta and Wolff, {Edward N.} and {D{\textquoteright} Ambrosio}, Conchita",

note = "Funding Information: We are grateful to Anthony Lepinteur and to an anonymous referee for their useful comments. D{\textquoteright}Ambrosio and Menta gratefully acknowledge financial support from the Fonds National de la Recherche Luxembourg (Grants C18/SC/12677653 and 10949242). Publisher Copyright: {\textcopyright} 2021, Springer Science+Business Media, LLC, part of Springer Nature. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.",

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doi = "10.1007/s10888-020-09473-4",

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N1 - Funding Information: We are grateful to Anthony Lepinteur and to an anonymous referee for their useful comments. D’Ambrosio and Menta gratefully acknowledge financial support from the Fonds National de la Recherche Luxembourg (Grants C18/SC/12677653 and 10949242). Publisher Copyright: © 2021, Springer Science+Business Media, LLC, part of Springer Nature. Copyright: Copyright 2021 Elsevier B.V., All rights reserved.

PY - 2021

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N2 - Income volatility and wealth volatility are central objects of investigation for the literature on income and wealth inequality and dynamics. Here we analyse the two concepts in a comparative perspective for the same individuals in Italy and the U.S. over the last two decades. We find that in both countries wealth volatility reaches significantly higher values than income volatility, the effect being mostly driven by changes in the market value of real estate assets. We also show that there is more volatility in both dimensions in the U.S. and that the overall trend in both countries is increasing over time. We conclude by exploring volatility in consumption.

AB - Income volatility and wealth volatility are central objects of investigation for the literature on income and wealth inequality and dynamics. Here we analyse the two concepts in a comparative perspective for the same individuals in Italy and the U.S. over the last two decades. We find that in both countries wealth volatility reaches significantly higher values than income volatility, the effect being mostly driven by changes in the market value of real estate assets. We also show that there is more volatility in both dimensions in the U.S. and that the overall trend in both countries is increasing over time. We conclude by exploring volatility in consumption.

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