We study workers' idiosyncratic earnings risk over the life-cycle using a German administrative data set. Positive and … incomplete markets model. Moreover, age-varying risk implies a linear increase in consumption inequality late in working life …

In this paper, we empirically assess the causal relationship between trade and individual income risk and study the … from 1976 to 2012. Our estimates suggest substantial heterogeneity in labor income risk across workers in different entry … exports (per worker) are strongly and causally related to income risk: Imports increase risk and exports decrease risk, and …

theory suggests that with increasing labor income risk, the reluctance of households to hold stocks increases. We propose to … measure income risk as the observed variation of household income over a five year period. We find that indeed higher income … risk reduces the propensity to invest in stocks. However, when controlling for household heterogeneity as well as …

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 …

of quantity constraints on product markets for the consumer's aversion towards income risk. I show that the effect can be … decomposed in a cardinal and ordinal term, that both terms may add up to a non-linear effect on the coefficient of relative risk … aversion, and that a severely rationed consumer may even become less risk averse then when unconstrained …

Considering a consumer with standard preferences, I trace out the consequences for risk aversion and prudence of … quantity constraints on markets. I first show how the effect can be decomposed into a price risk effect and an endogenously … changing risk aversion/prudence effect. Next, I calibrate locally both effects on relative risk aversion and prudence, using …

This paper measures risk in the present value of workers’ remaining lifetime earnings. Building upon a common earnings … risk is only moderately correlated with those annual risks and is a much stronger predictor of several major life decisions …. Unlike annual risk, it is often larger for relatively affluent groups. It also has many other covariates, including …

, and not a direct consequence of changes in their disposable income. I also find that households in the affected …

some savers have no risk-sharing motives, there exists a non-negligible set of economies (endowments) and equilibria at …

In this paper household level data are used to explore whether unemployment risk is an important factor in the timing … of consumers' durable goods purchase decisions. A theoretical model is presented in which both income uncertainty and … cycle. The model predicts that consumers respond to increases in unemployment risk by postponing purchases of the durable …