The paper simulates the labor market impact of a fixed allowance for social insurance contributions. Based on a discrete choice labor supply model estimated on data from the German Socio-Economic Panel, we evaluate household utility changes triggered by the reform, accounting for behavioral...

This paper investigates whether risk preferences explain how individuals are sorted into occupations with different earnings variability. We exploit data from the German Socio-Economic Panel, which contains a subjective assessment of willingness to take risks whose behavioral relevance has been...