Higher Order Income Risk,Income Mobility,and Inequality
We demonstrate the existence and heterogeneity of higher-order income risk and study the impact of higher-order income risk on income mobility and inequality.We find that optimizing the income shock structure and eliminating high-order income risks can improve income mobility,decrease the risk of income stagnation for low-income groups significantly,and reduce consumption inequality and wealth ine-quality.Therefore,first,the government needs to protect employment,reduce the labor market friction,and prevent workers from being affected by extreme income shocks such as unemployment.Second,the government needs to further improve the vocational training system and vocational promotion system to mitigate the risk of sliding down the work ladder for the workers.
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维普
