pivotal role of risk attitudes and the schooling gradient of earnings risk. We use Spanish data to document the gradient and … to estimate individual response to earnings risk in deciding on attending university education, by measuring risk as the … risk aversion, the response may be reversed to positive. …

Labour income follows a deterministic growth trend and fluctuates between two values. Interest rates are drawn …

Idiosyncratic labor incomes are typically modeled either by stochastic processes with heterogeneous income profiles … (HIPs) or restricted income profiles (RIPs). The HIP assumes that individual labor income grows deterministically at an … unobserved rate and contains a persistent but stationary component, while the RIP assumes that income contains a random walk, a …

We develop a new approach to the decomposition of income risk within a non- stationary model of intertemporal choice … environment is used to show the robustness of the method for decomposing income risk. The approach is used to investigate the … changes in income risk in Britain across the in- equality growth period from the late 1970s to the late 1990s. We document …