-term unemployment spells to have permanent effects on subsequent labor income prospects. The risk of losing future labor income could …

uncertainty aversion parameter, which measures the investor's preference for robustness using econometric theory. I derive a …

stocks and risk-free bonds over its lifecycle. We show that allowing for the wage indexation of social security benefits …

Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that … assets. Because households are subject to more background risk than previously considered, the estimated model implies a … substantially lower coefficient of risk aversion. We also find renewed support for rule-of-thumb investment strategies under the …