parametric and non-parametric measures to capture expected wage risk. These wage risk measures are unfettered by heterogeneity … which handicapped the use of actual market wage dispersion as risk measure in earlier studies. Students in our sample … anticipate that the market provides compensation for risk, as has been established with Risk Augmented Mincer earnings equations …

variance of exam grades is higher and that starting wages are lower if the skew is higher: employers shift quality risk to new …

model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals …

uncertainty ; wage shocks ; risk sharing ; wage insurance …

one of the central determinants of individuals’ portfolio composition: higher background risk reduces risky investments …From standard portfolio-choice theory it is well-understood that background risk, overwhelmingly due to wage risk, is …. However, if background risk is negatively correlated with financial market risk, higher background risk implies more risky …