generous social assistance, which guarantees a permanent universal minimum household income, with only a minor role for …, savings, and the labor supplies of all adult household members. We show that the optimal policy mix is dominated by moderately … temporary earnings-related unemployment insurance. The optimal amount of social assistance is heavily influenced by income …

Social Assistance, which provides a permanent universal household income oor, with a minor role for temporary earnings … social programs, savings and the labor supplies of all adult household members. The optimal policy mix focuses mainly on …-related Unemployment Insurance. Reecting that married couples obtain intra-household insurance by making labor supply choices for both …

by age, education, wealth, sex and household composition. In aggregate, social assistance dominates unemployment … social assistance increases aggregate welfare. Income pooling in married households decreases the welfare value of social …

reacted to the increase in uncertainty about the future path of income that such an event produced. Our estimates are obtained …

We decompose permanent earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks …-cycle model of consumption and labor supply. Both permanent wage and hours shocks are important to explain earnings risk, but wage … shocks have greater relevance. Progressive taxation strongly attenuates cross-sectional earnings risk, its life …

Whether couples pool their resources and behave like a unit or spend their income individually is crucial for social … and tax policy. In this paper, I provide a test of the income pooling hypothesis using administrative cross … individual income contribution shares in an instrumental variables approach. Although the hypothesis is broadly rejected, there …

We show that the discontinuity in the distribution of surveyed female income shares at the margin where a woman would …

-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household …We extend the canonical income process with persistent and transitory risk to shock distributions with left … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …

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 … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job …