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We draw on two decades of historical data to analyze how regional labor markets in West Germany adjusted to one of the …, similar in magnitude to the refugee inflow that Germany is experiencing today, also reduce native income losses markedly but …
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Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the willingness to take risks. This effect strengthens in...
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