We use detailed Norwegian administrative data to identify the income loss associated with the onset of unemployment and analyze the corresponding consumption expenditure response and the extent to which this response is related to household balance sheet components. Unemployment results in a...

Many people in rural Africa still rely on smallholder agriculture as their main source of livelihood. Yet pursuing other economic activities beyond farming to diversify incomes becomes increasingly important. In this paper, we focus on the role of people's income aspirations in the process of...

Using 20 years of nationally representative panel data in South Korea, we estimate how life satisfaction responds to income shocks. We document that unexpected income changes significantly impact an individual's life satisfaction, and the magnitudes depend on the persistence of income shocks. We...