Gonzalo Paz-Pardo

I am a Senior Economist at DG Research in the European Central Bank. I hold an Economics PhD from University College London.

I am interested in macroeconomics, household finance, and labor economics, with a particular focus on earnings dynamics and inequality.

My latest CV is available here.


Job market paper

Homeownership and Portfolio Choice over the Generations

Earnings are riskier and more unequal for households born in the 1960s and 1980s than for those born in the 1940s. At the same time, despite the improvements in financial conditions that made it easier to borrow, younger generations are less likely to be living in their own homes than older generations at the same age. By using a rich life-cycle model with housing and portfolio choice that includes flexible earnings risk and aggregate asset price risk, I show that changes in earnings dynamics account for a large part of the reduction in homeownership across these generations. Lower-income households find it harder to buy housing, and some households delay homebuying decisions because their income is more unstable. Relatively looser borrowing constraints help to explain how the 1980s cohort bought houses in a context of risky earnings and high house prices, and the reduction in the cost of access to financial markets can explain the increase in stock market participation over different generations.

Published papers

De Nardi, Fella and Paz-Pardo (2020), “Nonlinear household earnings dynamics, self-insurance, and welfare", Journal of the European Economic Association, volume 18, issue 2, pages 890-926. DOI https://doi.org/10.1093/jeea/jvz010 . An earlier, different version of the paper was circulated as “The Implications of Richer Earnings Dynamics for Consumption and Wealth", NBER working paper no. 21917 (2016).

Working papers

Family and Government Insurance: Wage, Earnings, and Income Risks in the Netherlands and the U.S. (joint with Mariacristina De Nardi, Giulio Fella, Marike Knoef, and Raun van Ooijen), NBER working paper no. 25832 (2019). Updated December 2019. Under revision.

Work in progress

Household Earnings Risk, Government Policy, and Welfare in the UK (joint with Mariacristina de Nardi and Giulio Fella)

How much wealth inequality with preference heterogeneity?


I'm a proud winner of an UCL Education Award for my teaching work.

I have taught Economics 1001 at University College London for three years, as part of the CORE Project. Here they interviewed me about my experience teaching the material to first year students and introducing it to new teachers. I have also collaborated with the translation to Spanish of the book as an academic reviewer.

I have also taught Advanced Macroeconomics in the UCL MSc Economics (2018-2019) and Microeconomics for Policy in the UCL MSc Economic Policy (2014-2015).

I have also run a panel data course in A Coruña University for four years.