Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192654 
Year of Publication: 
2012
Series/Report no.: 
Discussion Papers No. 672
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
Using administrative panel data from Norway, we investigate the development of household labor income, financial wealth and asset holdings over a nine-year period surrounding job loss. Consistent with a simple theoretical model, the data show precautionary saving and a shift toward safer assets in the years leading up to unemployment, and depletion of savings during unemployment. This suggests that at least some households can foresee and prepare for upcoming unemployment, which indicates that private savings can complement publicly provided unemployment insurance.
Subjects: 
unemployment
precautionary saving
consumption smoothing
household portfolios
portfolio allocation
optimal unemployment insurance
JEL: 
D12
E21
E24
G11
J65
Document Type: 
Working Paper

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