exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal … may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the … principal may optimally want to allow the agent to reduce his risk exposure. Nevertheless, even endogenous risk may be higher …

in the type of degree studied can explain an additional 8.4% of the male-female pay gap. Risk-augmented earnings …

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 …-level, idiosyncratic risk implies that distinct risk-sharing institutions - even those providing the same level of insurance - can lead to …

In this paper we investigate the effect of labour income uncertainty on the probability of home ownership in Germany …

evidence for compensating wage differentials in Germany so far. Estimating wage regressions with data of the German Socio …-Economic Panel (GSOEP) within individually perceived hazards of work accidents as a risk variable, evidence for compensating wage … differentials in Germany is found even though other effects may partly weaken the existing wage premiums due to risks at work. …

This paper investigates whether risk preferences explain how individuals are sorted into occupations with different … willingness to take risks whose behavioral relevance has been validated in previous work. As a measure of earnings risk, we use … relating earnings risk to the measure of individual risk preference, our evidence shows that individuals with low willingness …

, but with increments being smaller in the European data. Third, we find that wage risk is procyclical in Germany while it … household-level wage innovations. We draw our inference from household panel data sets for the US, the UK, and Germany. First … determining the cyclical properties of labor market risk. …

-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the … risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated …