Micro and Macro Implications of Household Behaviour and Financial Decision-Making - 16

We are delighted to announce the next seminar in the series - Micro and Macro Implications of Household Behaviour and Financial Decision-Making.

The seminar will run from 3:30 to 5:00 pm (BST) on Friday 27 September.

Richard Audoly (Federal Reserve Bank of New York) presenting "The life-cycle dynamics of wealth mobility" with discussion by Fatih Guvenen (University of Minnesota) and Moritz Kuhn (University of Mannheim and CEPR).

This paper is co-authored with Rory McGee (University of Western Ontario, Institute for Fiscal Studies), Sergio Ocampo (University of Western Ontario), Gonzalo Paz-Pardo (European Central Bank).

Abstract: We use 25 years of tax records for the Norwegian population to study the mobility of wealth over people’s lifetimes. We find considerable wealth mobility over the life cycle. To understand the underlying mobility patterns, we group individuals with similar wealth rank histories using agglomerative hierarchical clustering, a tool from statistical learning. The mobility patterns we elicit provide evidence of segmented mobility. Over 60 percent of the population remains at the top or bottom of the wealth distribution throughout their lives. Mobility is driven by the remaining 40 percent, who move only within the middle of the distribution. Movements are tied to differential income trajectories and business activities across groups. We show parental wealth is the key predictor of who is persistently rich or poor, while human capital is the main predictor of those who rise and fall through the middle of the distribution.

Register to receive the Zoom Link here.

Further details can be found on the seminar webpage here. 

Organisers:
Richard Blundell
Adrien Couturier
Michael Haliassos
Christopher Hansman
Yigitcan Karabulut
Peter Levell
Clara Martinez-Toledano
Benjamin Moll
Tarun Ramadorai
Xiao Yin