Labor Market Uncertainty and Portfolio Choice Puzzles

• 成果类型: Article
• 署名作者: Chang, Yongsung; Hong, Jay H.; Karabarbounis, Marios
• 署名单位: University of Rochester; Yonsei University; Seoul National University (SNU); Federal Reserve System - USA; Federal Reserve Bank - Richmond
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20160207
• 发表日期: 2018
• 页码: 222-262
• 关键词: life-cycle; income risk; partial insurance; STOCK; consumption; mobility

摘要

The standard life-cycle models of household portfolio choice have difficulty generating a realistic age profile of risky share. These models not only imply a high risky share on average but also a steeply decreasing age profile, whereas the risky share is mildly increasing in the data. We introduce age-dependent, labor market uncertainty into an otherwise standard model. A great uncertainty in the labor market high unemployment risk, frequent job turnovers, and an unknown career path-prevents young workers from taking too much risk in the financial market. As labor market uncertainty is resolved over time, workers start taking more risk in their financial portfolios.