There is a large literature showing that the self-employed underreport their income to tax authorities. In this paper …, we quantify the extent to which the self-employed also systematically underreport their income in U.S. household surveys …. To do so, we use the Engel curve describing the relationship between income and expenditures of wage and salary workers …

Uninsurable income risk is often cited as an explanation for empirical deviations from the Lifecycle/Permanent-Income … estimating income uncertainty essentially measure the cross-sectional variance of a subpopulation rather than the true … income uncertainty. We measure income uncertainties as the variance of income forecasting errors at different ages and over …

log consumption, assets, and labor income will be cointegrated. They conclude that this cointegrating relationship is …, assets, and labor income that are jointly consistent with an underlying budget constraint. By contrast, Lettau and Ludvigson …

We propose a novel approach to estimate household income uncertainty at various future horizons and characterize how … the estimated uncertainty evolves over the life cycle. We measure income uncertainty as the variance of linear forecast … errors conditional on information available to households prior to observing the realized income. This approach is …