assumptions of the emerging state of the world. We borrow the idea of risk from the finance literature and compare the payoff of … staying with the original outcome with the risk of deviating. Employing this idea to the core leads to a new concept that we … call the risk-based core. We introduce this concept and discuss its properties. We find an inclusion relation between cores …

We provide a critique of the methods that have been used to derive measures of income risk and draw attention to the … importance of demographic factors as a source of income risk. We also propose new measures of the contribution to total income … risk of demographic and labour market factors. Empirical evidence supporting our arguments is provided using data from the …