Idiosyncratic labor incomes are typically modeled either by stochastic processes with heterogeneous income profiles (HIPs) or restricted income profiles (RIPs). The HIP assumes that individual labor income grows deterministically at an unobserved rate and contains a persistent but stationary...

Using data from the March CPS and the 1960 Census, this paper describes earnings and employment changes for married couples in different types of households stratified by the husband's hourly wage. While the declines in male employment and earnings have been greatest for low wage men, employment...

We provide a guide to estimating the canonical income process that includes autoregressive, transitory, and fixed effect components using quasidifferences. Estimation in quasidifferences has its advantages over estimations in levels and differences, yet it is rarely used in practice, and nothing...