Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161074
Authors: 
Mecikovsky, Ariel
Wellschmied, Felix
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10451
Abstract: 
We estimate the changes in US male labor market risk over the last three decades in a model of endogenous labor supply and job mobility. Across education groups permanent shocks to productivity have become more dispersed. Moreover, heterogeneity in pay across offered jobs has increased for workers with at least some college education. Simulating these changes in a life-cycle model with search frictions, we show that the estimated changes in risk can account for 85 percent of the increase in within group wage inequality. The welfare costs of rising risk are small.
Subjects: 
wage risk
secular trends
insurance
JEL: 
D91
J11
J22
J31
J64
Document Type: 
Working Paper

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