In the U.S., inequality among individuals in both consumption and income increases with age, although it is unclear how large a role income inequality plays in consumption inequality. The question is important because the design of public policy programs, such as welfare reform and unemployment insurance, could benefit greatly from identifying the sources of individuals’ risk and uncertainty.
Suggested citation: "Labor Markets," Federal Reserve Bank of Cleveland, Economic Trends, no. 01-03, pp. 12, 03.01.2001.