; Collateral ; Income risk ; Bankruptcy …. Furthermore, we establish two quantitative results. Firstly, modest levels of risk aversion are necessary to match observed debt …

In this paper we use administrative data from the social security to study income dynamics and income risk inequality … in Spain between 2005 and 2018. We construct individual measures of income risk as functions of past employment history …, income, and demographics. Focusing on males, we document that income risk is highly unequal in Spain: more than half of the …