In this paper we investigate the effect of labour income uncertainty on the probability of homeownership in Germany and … that highlights the pivotal role of risk attitudes in the housing tenure decisions that also allow us to introduce the … preference for renting while those located in a positively skewed income distribution show a greater propensity for homeownership …

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 …