cit, shows the percentage change in mean income across income quintiles in the euro area four quarters after the impact of a quantitative easing shock, which is assumed to correspond to a 30 basis point drop in the spread between a 10-year sovereign bond and the policy rate.
It also shows the decomposition of the change into the extensive margin (transition from unemployment to employment) and the intensive margin (increase in wages). The numbers in brackets show the initial levels of mean gross household income in each quintile. The statistics cover the euro area, which is modelled here as an aggregate of France, Germany, Italy, and Spain.