Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk … attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job …

show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect …We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we … crucially depends on the income risk. The interaction effect between both risk measures is negative. Using administrative panel …

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 …