  This paper proposes a novel approach for identifying coefficients in an
earnings dynamics model with arbitrarily dependent contemporaneous income
shocks. Traditional methods relying on second moments fail to identify these
coefficients, emphasizing the need for nongaussianity assumptions that capture
information from higher moments. Our results contribute to the literature on
earnings dynamics by allowing models of earnings to have, for example, the
permanent income shock of a job change to be linked to the contemporaneous
transitory income shock of a relocation bonus.
