This paper uses annual data drawn from the GSOEP to estimate individual earnings risk (labor market risk) in Germany … been rising in West Germany in the 1990s and have remained at elevated levels in the 2000s. In contrast, labor market risk … in East Germany did not rise. These findings are robust to different sample selection criteria and changes in the …

substantial reduction in the output cost of recessions and a more moderate reduction in the welfare cost of recessions in Germany. …