This research stream is dedicated to measuring and analysing the consequences that economic, environmental, and health shocks have on households. This includes studying inequalities in terms of income, consumption, and wealth, and developing policies aimed at improving households’ resilience to financial shocks.

One of the project tasks is the measurement of financial vulnerability and fragility of individuals and households, using administrative data integrated with survey data on sentiment and subjective expectations, as well as experimental data.

The research stream also explores measures of inequality, intergenerational mobility, and inequality of opportunity in terms of income, consumption, and wealth, analysing how these vary over time and across the life cycle. Another focus of the project is the effect of and response to environmental, health, economic, and financial shocks, examining the role of welfare programmes, fiscal policies, and the labour market in enhancing resilience.

In addition, the research stream analyses the role of financial markets, credit, and insurance in improving household resilience and risk management, including the household’s own insurance role. Tools to improve household financial risk management, limit debt exposure, and promote financial education will also be explored.

Finally, the research stream takes a historical perspective on households’ responses to destabilising events, such as epidemics, wars, and economic crises, examining changes in employment opportunities for women, institutional reforms, and geographic mobility.