This investigation of compensating wage differentials uses an instrument for the risk of unemployment, namely, the industry-specific shipment volatility, to address some empirical anomalies found in the literature. I find that risk premiums for the risk of unemployment range from 8.5 to 19...

A well-supported conclusion of previous research is that displacement entails large and persistent costs for workers. It therefore seems reasonable to expect workers to try to anticipate and respond to the risk of displacement. Using 1983-93 data from the Panel Survey of Income Dynamics and the...