Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278293 
Year of Publication: 
2023
Series/Report no.: 
Discussion Papers No. 23-01
Publisher: 
University of Bern, Department of Economics, Bern
Abstract: 
With 20 years of PSID data, we document persistent racial differentials in life-cycle consumption dynamics. Starting from similar positions in the consumption distribution Blacks end up in lower percentiles than Whites. Education, income, and wealth are three key drivers of these different dynamics. Blacks tend to save less, and hence have less buffer than the Whites to prevent them from falling in the lower part of the consumption distribution.
Subjects: 
Consumption
Income
Savings
Inequality
Persistence
Life-Cycle
JEL: 
E21
D12
C3
Creative Commons License: 
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Document Type: 
Working Paper

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