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Morning Should-Read: Nick Bunker: Income Over the Lifetime

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Morning Should-Read:

Nick Bunker: Income Over the Lifetime: "How exactly does income growth vary over the lives of workers?...

Guvenen... Karahan... Ozkan... and... Song.... Income growth--pretty much all of it--happens in the first decade of workers’ careers.... A worker at the median of the income spectrum will have a growth rate of about 38 percent, while a worker at the 99th percentile will see his income grow by 1,450 percent.... Variance decreases as a worker moves up the income ladder.... [until] worker starts earning over the 90th percentile... variance increases as incomes get close to the very top of the ladder.... The distribution of income growth is quite different from what is usually suspected. Instead of an anticipated smooth bell curve, the distribution has a very high peak and long tails, in addition to being negatively skewed...