We develop a new approach to the decomposition of income risk within a nonstationary model of intertemporal choice. The … approach allows for changes in income risk over the life-cycle and with the business cycle. It requires only repeated cross … decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

-employment ; wage-employment ; income distribution ; income risk ; income skew ; income variance ; occupational choice ; labor market … a Dutch college or university, grouped in approximately 120 labor market segments, we find significant support for these … entry ; labor market segments ; opportunity cost …

This paper studies how the risk of divorce affects the human capital decisions of a young couple. We consider a setting … where complete specialization (one of the spouses uses up all the education resources) is optimal with no divorce risk … symmetric allocation will become more attractive as the probability of divorce increases, if risk aversion is high and/or labor …

welfare evaluation. -- income mobility ; labor market risk ; social welfare … consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …

-averse elders had more control over technological choices implying lower risk-taking. Focusing on non-market institutions expands on …We analyze the role of risk-sharing institutions in transitions to modern economies. Transitions requires individual …-level risk-taking in pursuing productivity-enhancing activities including using and developing new knowledge. Individual …

capital returns using a performance measure and by using tests for mean-variance spanning. A risk-return trade-off is revealed … that are efficient in terms of investment goods, and a range of educations that are inefficient, and may be chosen for … consumption purposes. -- educational choice ; efficient frontier ; human capital investment ; mean-variance analysis …

risk differ between agents and the econometrician. Our tests are based on panel data elicited yearly from British … ; income risk ; limited information variances …

This paper investigates the role that idiosyncratic uncertainty plays in shaping social preferences over the degree of … labor market flexibility, in a general equilibrium model of dynamic labor demand where the productivity of firms evolves … firing costs are relatively low to begin with, a transition to a rigid labor market is favored by all and only the employed …