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

earnings deter risk-averse individuals. In this paper I analyse the expected value and variance of income in self …Which role do individual income prospects play in the decision to be an entrepreneur rather than an employee? In a …-employment entry and exit under risk are estimated, which include a standard risk aversion parameter. The model predicts that the …

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 …

We provide a critique of the methods that have been used to derive measures of income risk and draw attention to the … importance of demographic factors as a source of income risk. We also propose new measures of the contribution to total income … risk of demographic and labour market factors. Empirical evidence supporting our arguments is provided using data from the …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states … systems as those established in the EU are able to offset the negative impact of unemployment risk on the portfolio …