In this paper we present and confront the expected outcome of an increase in risk on the regional or sectoral … (Bhagwati-Hamada). Importance of convexity of local labor demands was invariably recognized. A localized increase in risk does … not always repel the labor force in the long-run. This statement would hold even if individuals were not risk-neutral, as …

This paper documents the role of unemployment and earnings risk in reconciling evidence in payoff differentials between … the role of lower unemployment risk in self-employment. We decompose earnings risk dynamics by estimating a life … throughout their life-cycle. Our results challenge the conventional view that self-employment necessarily entails higher risk and …