Labor income profiles are not heterogeneous: Evidence from income growth rates
劳动收入轨迹并不异质:来自收入增长率的证据
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 component, while the RIP assumes that income contains a random walk, a stationary component, and no unobserved deterministic growth-rate component.I show that if idiosyncratic labor…