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...

The concept of the "employment threshold" plays an important role in the public of unemployment. The employment threshold is defined as that growth rate of output which is necessary to keep employment constant despite the continuous rise in labor productivity. It is related to the Okun...