Helene Onshuus

Journal of Monetary Economics 146(103578) p. 1-20 Doi: https://doi.org/10.1016/j.jmoneco.2024.103578

This paper examines heterogeneity in household income and consumption responses to unemployment, using granular administrative tax data from Norway. On average, unemployment results in a significant, lasting income reduction, accompanied by a decrease in consumption expenditures of between one-third to one-half of the income loss. We find that households with greater liquid assets at the outset experience less of a decline in consumption, whereas those with higher levels of debt encounter a more substantial decrease. Notably, also the interaction of liquid assets and debt holdings matters for the consumption response. While households with larger initial liquid asset holdings on average respond less, the analyses show that this is not the case among households that simultaneously hold substantial amounts of debt, thus adding to a more nuanced view of the importance of household heterogeneity for economic outcomes. Furthermore, our investigation into heterogeneity across family composition and child age uncovers distinct patterns in consumption responses, highlighting the varied impacts of unemployment. Lastly, we find that spending patterns, as indicated by the marginal propensity to consume (MPC), become more pronounced during recessions.

Skattekommisjonen har fått i oppgave å gjøre skattesystemet bedre tilpasset langsiktige utfordringer for norsk økonomi. Hva betyr egentlig det, spør Helene Onshuus.

Vi trenger ungdommen når eldrebølgen treffer.

At offentlig sektor er blitt dyr i drift, skyldes ikke at vi bruker for mye penger eller er uproduktive. Grunnen er at vi er ekstremt produktive. Det bør både sløserikritikerne og velferdsstatsforkjemperne ta innover seg, skriver Helene Onshuus.

Vil kunstig intelligens gi økonomisk vekst over tid? I så fall må den oppfylle minst ett av to kriterier: Kunne brukes til å produsere noe som er nyttig for oss, eller frigjøre arbeidskraft, skriver Helene Onshuus.

Skattefradraget skal gjøre det mer lønnsomt å stå i jobb, blir vi fortalt av Jens Stoltenberg og teamet av økonomer som har utformet eksperimentet. Og det er riktig, men eksperimentet vil også fortelle oss noe om hvor mye unge verdsetter fritid.

Kartellkonferansen 2025

Kort innlegg om offentlig pengebruk og Baumol-effekten

Dolomiti Macro Meeting

Nordic summer institute in labor economics in Uppsala

How does family composition affect consumption insurance? I study the consumption expenditure response to job loss in Norway from 1997 to 2011, and present two empirical facts: Among job losers without children, the consumption expenditure response does not differ between couples and singles. Second, single parent job losers reduce consumption expenditure much less than married or cohabiting job losers with children. Both findings run contrary to workhorse models of family insurance. I resolve the puzzle in a model of household consumption with pre-committed consumption and show that constrained households have higher marginal propensities to consume than unconstrained households.

Seminar Handelshøyskolen Oslomet

Research seminar: The Consumption Expenditure Response to Unemployment