, as well as the degree of risk aversion. Since the consumption uncertainty associated with compensation generally exceeds …

-skilled labor increases. This suppresses wages of low-skilled workers and/or increases their unemployment rates. On the other hand … for the years 1970 - 2004, we document how the volatility of hours worked and of wages of workers at different skill …

regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …

normality. For the bottom earners, large income changes are driven equally by hours and wages which is consistent with …

, 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 …

idiosyncratic risk implied by the benchmark process is between two-to-four times higher than the canonical Gaussian one. Third, the … transitory income (e.g., from a stimulus check) is higher under non-Gaussian earnings risk. …

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 …

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 …

-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …