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A Household Level Study of the Determinants of Incomes and Consumption

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Author Info
Miles, David

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Abstract

This paper uses micro data to estimate the determinants of household income and to measure how human capital and earnings uncertainty affect consumption. We also estimate how home-owners react to capital gains on housing and assess whether these gains are treated in the same way as other sources of income. Using UK micro data we show that estimates of permanent income and of earnings uncertainty have powerful effects on spending. We find that precautionary motives may account for a substantial proportion of household saving. We also provide estimates of the shape of the earnings profile for various occupational groups and of the returns to education in different professions. Copyright 1997 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 107 (1997)
Issue (Month): 440 (January)
Pages: 1-25
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Handle: RePEc:ecj:econjl:v:107:y:1997:i:440:p:1-25

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  1. Miles, David, 2000. "Funded and Unfunded Pension Schemes: Risk, Return and Welfare," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  2. Edmund Cannon & Ian Tonks, 2002. "Annuity Prices, Money's Worth and Replacement Ratios: UK experience 1972 - 2002," The Centre for Market and Public Organisation 02/051, Department of Economics, University of Bristol, UK. [Downloadable!]
  3. Paivi Kankaanranta, 2006. "Consumption Over the Life Cycle: Theory and Empirical Regularities," Research Reports 118, University of Turku, Department of Economics. [Downloadable!]
  4. Simon Burgess & Karen Gardiner & Stephen P. Jenkins & Carol Propper, 2000. "Measuring Income Risk," Discussion Papers of DIW Berlin 213, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  5. Charles Grant & Tuomas Peltonen, 2005. "Housing and Equity Wealth Effects of Italian Households," DNB Working Papers 043, Netherlands Central Bank, Research Department. [Downloadable!]
    Other versions:
  6. Sayema H. Bidisha, . "Saving Behaviour of the Immigrants and Ethnic Minorities in the UK: Evidence from Panel Data," Discussion Papers 08/08, University of Nottingham, School of Economics. [Downloadable!]
  7. Cerny, Ales & Miles, David K & Schmidt, Lubomir, 2005. "The Impact of Changing Demographics and Pensions on The Demand for Housing and Financial Assets," CEPR Discussion Papers 5143, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  8. repec:ese:iserwp: is not listed on IDEAS
  9. Bill Collier, 2000. "The UK Wage Curve: New Evidence from the British Household Panel Survey," Studies in Economics 0010, Department of Economics, University of Kent. [Downloadable!]
  10. Sicular, Terry & Yue, Ximing & Gustafsson, Bjorn & Li, Shi, 2006. "The Urban-Rural Income Gap and Inequality in China," Working Papers RP2006/135, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  11. Miles, David K, 2000. "Funded and Unfunded Pensions: Risk, Return and Welfare," CEPR Discussion Papers 2369, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  12. Sebastian Barnes & Gregory Thwaites, . "'Real-world' mortgages, consumption volatility and the low inflation environment," Bank of England working papers 273, Bank of England. [Downloadable!]
  13. Sand, Roald, 2002. "The Propensity to Consume Income from Different Sources and Implications for Saving: An Application to Norwegian Farm Households," Workshop on the Farm Household-Firm Unit: Its Importance in Agriculture and Implications for Statistics, April 12-13, 2002, Wye Campus,Imperial College 15716, International Agricultural Policy Reform and Adjustment Project (IAPRAP). [Downloadable!]
  14. Manuel Muñoz C., 2004. "Determinantes del ingreso de los hogares y de su gasto corriente," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 6(10), pages 183-199, January-J. [Downloadable!]
  15. Insong Jang, 2001. "Forward Looking Behavior And Empirical Household Consumption Function," Bonn Econ Discussion Papers bgse7_2001, University of Bonn, Germany. [Downloadable!]
  16. Päivi Kankaanranta, 2006. "Consumption Over the Life Cycle: A Selected Literature Review," Discussion Papers 7, Aboa Centre for Economics. [Downloadable!]
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