relative to that of government employees before and after the reform provides a clean identification of income uncertainty that … occupational choices and we disentangle the effects of uncertainty from pessimistic outlook. We obtain evidence that precautionary …

We study the macroeconomic effects of uncertainty shocks in a DSGE model with labor search frictions and sticky prices …. In contrast to a real business cycle model, the model with search frictions implies that uncertainty shocks reduce … potential output, because a job match represents a long-term employment relation and heightened uncertainty reduces the value of …

estimation uncertainty regarding the relative importance of the signaling and portfolio balance channels. …