Household Adaptation to Seasonal Work Interruptions
Early Career Research Award
Economic activity is highly seasonal. We show how seasonal fluctuations in aggregate employment translate into seasonal volatility in earnings and income among US households. Exposure to such volatility exhibits a strong skill gradient: less-educated individuals, and those with lower earnings potential more generally, show much more variability in employment rates at seasonal frequencies. Isolating a component of seasonal earnings loss that is predictable at the individual level, we track the evolution of household income around the time of annually recurrent job separations, and we study the margins through which households recover lost earnings.