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Life cycle income and consumption patterns in transition

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Abstract

There is vast literature examining how households’ income and consumption change over the life cycle. These studies, however, are usually restricted to developed economies. The main objective of this paper is to add to this literature by investigating the life cycle profiles and relative income mobility in a transition economy, facing rapid structural economic and social changes, such as Poland. It is shown that, in contrast to the US, where income inequality over the life cycle follows a roughly linear trend, the age-variance profile of income in Poland is hump-shaped. This finding might indicate that the income process at a micro level in Poland exhibits less persistence than in the US. The estimates of relative income mobility confirm this conjecture.

Suggested Citation

  • Aleksandra Kolasa, 2012. "Life cycle income and consumption patterns in transition," NBP Working Papers 133, Narodowy Bank Polski.
  • Handle: RePEc:nbp:nbpmis:133
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    Cited by:

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    2. Emrehan Aktug & Tolga Umut Kuzubas & Orhan Torul, 2017. "An Investigation of Labor Income Profiles in Turkey," Working Papers 2017/04, Bogazici University, Department of Economics.
    3. Magdalena Smyk & Joanna Tyrowicz & Barbara Liberda, 2014. "Age-productivity patterns in talent occupations for men and women: a decomposition," Post-Communist Economies, Taylor & Francis Journals, vol. 26(3), pages 401-414, September.
    4. Rosario Aldunate, 2019. "Returns to Work Experience in Chile," Working Papers Central Bank of Chile 855, Central Bank of Chile.
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    6. Arkadiusz Florczak & Janusz Jabłonowski, 2016. "Consumption over the life cycle in Poland," NBP Working Papers 252, Narodowy Bank Polski.

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    More about this item

    Keywords

    consumption; income; life cycle profiles; income inequality; relative income mobility; transition economy;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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