Unemployment's Impact on Spending: How Income Variation Affects Consumption Habits
The article explores how changes in employment affect family and overall spending. It shows that the impact of income changes on spending depends on where the income comes from. Productivity growth affects long-term income changes, while labor fluctuations impact short-term income changes. Factors like education, occupation, and age also play a role in determining income. The study suggests that a family's spending is influenced by their expected income, which considers their normal labor input and age-related income changes.