Asymmetries in Earnings, Employment and Wage Risk in Great Britain
Spyridon Lazarakis and
Jim Malley ()
No 6400, CESifo Working Paper Series from CESifo
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.
Keywords: idiosyncratic income risk; employment; social insurance policy (search for similar items in EconPapers)
JEL-codes: D31 E24 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-ias and nep-mac
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Working Paper: Asymmetries in earnings, employment and wage risk in Great Britain (2017)
Working Paper: Asymmetries in Earnings, Employment and Wage Risk in Great Britain (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6400
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