Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/145491
Authors: 
Hetschko, Clemens
Preuß, Malte
Year of Publication: 
2016
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Decision-Making under Risk and Ambiguity D04-V2
Abstract: 
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 one’s job reduces the willingness to take risks. This effect strengthens in previous hourly wage, begins to manifest itself as soon as an employee perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job finding behaviour, confirming the behavioural validity of our results.
JEL: 
D81
J64
J65
Document Type: 
Conference Paper

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