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 …

This paper investigates whether risk preferences explain how individuals are sorted into occupations with different … willingness to take risks whose behavioral relevance has been validated in previous work. As a measure of earnings risk, we use … relating earnings risk to the measure of individual risk preference, our evidence shows that individuals with low willingness …

Microeconomic theory predicts that under certain regularity conditions higher idiosyncratic risk increases the … propensity to insure against independent marketable risks. We apply these predictions to the specific case of labor income risk … and car insurance using data from the UK. The main empirical results are: -higher labor income risk induces a higher …

earnings deter risk-averse individuals. In this paper I analyse the expected value and variance of income in self …Which role do individual income prospects play in the decision to be an entrepreneur rather than an employee? In a …-employment entry and exit under risk are estimated, which include a standard risk aversion parameter. The model predicts that the …

income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study …: Satisfaction with household income and the income evaluation question as developed by Van Praag. It can be shown that satisfaction … with income is more affected by ex ante than by ex post volatility of income. The ordinal version of the Van Praag approach …

earnings deter risk-averse individuals. In this paper I analyse the expected value and variance of income in self …Which role do individual income prospects play in the decision to be an entrepreneur rather than an employee? In a …-employment entry and exit under risk are estimated, which include a standard risk aversion parameter. The model predicts that the …

This paper investigates how rural-urban income differentials interact with the risk coping motive to shape households …' migration behavior. Using a model of migration behavior under agricultural income risk, our theoretical results suggest that … agricultural income risk the household is facing. Empirical findings on Chinese farm households indicate that the incidence of …

income uncertainty from an ex ante point of view. Two different measures of subjective well being are under study …: Satisfaction with household income and the income evaluation question as developed by Van Praag. It can be shown that satisfaction … with income is more affected by ex ante than by ex post volatility of income. The ordinal version of the Van Praag approach …

a buffer-stock savings model and show that rising income uncertainty and pension reforms lead younger and older … household savings rate and the U-shaped age-profile of savings. -- China ; household savings ; income uncertainty ; pension …-shaped. Using a panel of urban Chinese households covering 1989-2006, we document a sharp increase in income uncertainty. While the …

Recent theoretical work shows that precautionary savings increase in response to an increase in first-order risk. In … welfare effect of future income uncertainty. We build a model of remittances and savings under income uncertainty and show … that an immigrant will increase his remittances in response to a first-order risk decrease in future income. Using changes …