Meghir, Costas; Pistaferri, Luigi - In: Handbook of labor economics : volume 4, part B, (pp. 773-854). 2011
contributions, distinguishing between papers that use only income data and those that use both income and consumption data. The …We discuss recent developments in the literature that studies how the dynamics of earnings and wages affect consumption … choices over the life cycle. We start by analyzing the theoretical impact of income changes on consumptionhighlighting the …