lack of compensating differentials for unemployment risk can arise in equilibrium when all workers are identical and firms … risky tail of the distribution of firm-level unemployment risk. Meanwhile, unemployment becomes persistent for low-wage and …

which individuals face educational risk and wage dispersion across two types of skills. Successful graduation and working as … a skilled worker depends on individual effort in education and on public resources, but educational risk still causes … implemented. -- human capital investment ; endogenous risk ; learning effort ; optimal taxation ; public education …

, individual wage risk has also increased. This paper proposes a mechanism through which a rise in wage risk increases the skill … premium. Intuitively, a rise in uninsured wage risk increases precautionary savings, thereby boosting capital accumulation … that the rise in wage risk observed between 1967 and 2010 increases the skill premium significantly. This finding is robust …

This paper documents the role of unemployment and earnings risk in reconciling evidence in payoff differentials between … the role of lower unemployment risk in self-employment. We decompose earnings risk dynamics by estimating a life … throughout their life-cycle. Our results challenge the conventional view that self-employment necessarily entails higher risk and …

. We track hourly workers who face the decision of how many hours to work at varying levels of Covid-19 risk and leverage …