Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161839
Authors: 
Angelopoulos, Konstantinos
Lazarakis, Spyridon
Malley, Jim
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6400
Abstract: 
This paper examines the relationship between idiosyncratic risk in labour income and fluctuations in aggregate labour market quantities for Great Britain. We use data from the British Household Panel Survey (BHPS) for 1991-2008 and from the BHPS sub-sample of Understanding Society for 2010-2014. We measure idiosyncratic risk in labour income by the relevant moments of the distributions of earnings, employment and wage shocks across individuals. Our main finding is that idiosyncratic risk increases during contractions in the labour market. Furthermore, we find evidence of insurance, both at the household level and in the form of public insurance. However, private and public insurance mechanisms against an increase in idiosyncratic risk are less e¤ective for households whose head does not hold a University degree.
Subjects: 
idiosyncratic income risk
employment
social insurance policy
JEL: 
D31
E24
J31
Document Type: 
Working Paper

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