. By stimulating labor demand, hiring subsidies reduce unemployment risk and precautionary savings. This increases the … more at the zero lower bound than it does during normal times. Central to this result is a precautionary savings channel …

This paper aims to fill the gaps in the analysis of risk‐sharing channels at the microlevel, both within and across … to quantify in a unified and consistent framework several risk‐sharing mechanisms that so far have been documented … both 2008-2010 and 2010-2012 spells. The most important smoothing mechanisms turn out to be self‐insurance through savings …