capital and labor incomes. This paper documents and explains changes in income volatility. Using a theoretical framework which … builds distribution risk into a real business cycle model, hypotheses on the determinants of the relative volatility of … idiosyncratic component of income volatility has hardly changed over time. Third, crosssectional heterogeneity in the evolution of …

respond more strongly to changes in wages. The average wage elasticity for mothers is in the range 0.25–0.30 …

duration dependence in the exit rates to employment and potential depreciation in reemployment wages. We show that the main …

is intractable. In this note we prove this comparative static result on risk aversion and wages in general equilibrium …One of the leading theories of entrepreneurship is that less risk averse individuals become entrepreneurs and more risk … comparative static result, that an economy-wide increase in risk aversion lowers the equilibrium wage, appeared to require the …

This paper examines the relationship between idiosyncratic risk in labour income and fluctuations in aggregate labour … BHPS sub-sample of Understanding Society for 2010-2014. We measure idiosyncratic risk in labour income by the relevant … idiosyncratic risk increases during contractions in the labour market. Furthermore, we find evidence of insurance, both at the …

We investigate how individual risk preferences affect the likelihood of selecting the more able contestant within a two …-player Tullock contest. Our theoretical model yields two main predictions: First, an increase in the risk aversion of a player … less able but less risk averse contestant can achieve an equal or even higher probability of winning than a more able but …

empirically show two main findings: first, risk-taking is positively related to the length of tax loss periods because the loss … rules shift some risk to the government; and second, the tax rate has a positive effect on risk-taking for firms that expect …