This paper assesses the accuracy of decomposing income risk into permanent and transitory components using income and … that this approximation can provide a robust method for decomposing income risk. The availability of asset data enables the …

We examine the effect on inequality of increasing one income, and show that for two wide classes of indices a benchmark … income level or position exists, dividing upper from lower incomes, such that if a lower income is raised, inequality falls …, and if an upper income is raised, inequality rises. We provide a condition on the inequality orderings implicit in two …