TY  - BOOK
AU  - Wu,Chunzan
AU  - Krueger,Dirk
ED  - National Bureau of Economic Research.
TI  - How Much Consumption Insurance in Bewley Models with Endogenous Family Labor Supply?
T2  - NBER working paper series
PY  - 2018///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - March 2018; Hardcopy version available to institutional subscribers
N2  - We show that a calibrated life-cycle two-earner household model with endogenous labor supply can rationalize the extent of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri and Saporta-Eksten (2016) in U.S. data. With additively separable preferences, 43% of male and 23% of female permanent wage shocks pass through to consumption, compared to the empirical estimates of 34% and 20%. With non-separable preferences the model predicts more consumption insurance, with pass-through rates of 29% and 16%. Most of the consumption insurance against permanent male wage shocks is provided through the labor supply response of the female earner
UR  - https://www.nber.org/papers/w24472
UR  - http://dx.doi.org/10.3386/w24472
ER  -