In this paper we investigate the effect of labour income uncertainty on the probability of home ownership in Germany … and Spain. This study is motivated by two facts. Firstly, theoretical models provide ambiguous results in this issue …

Barriers to homeownership have traditionally been an important research and policy issue. In particular, the role of …-occupancy propensities is driven by risk aversion, as it is assumed in most of the theoretical models, or on the contrary it is driven by … income uncertainty and credit constraints exert a significant negative effect on the probability of homeownership. Our main …

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 …

theory of precautionary savings and to quantify the importance of self-selection into occupations due to differences in risk … aversion. In the presence of self-selection, failing to control for risk aversion in empirical tests of precautionary savings … suggest that self-selection of risk averse individuals into low-risk occupations is economically important and decreases …

normality. For the bottom earners, large income changes are driven equally by hours and wages which is consistent with …