Wage Risk and Employment Risk over the Life Cycle

• 成果类型: Article
• 署名作者: Low, Hamish; Meghir, Costas; Pistaferri, Luigi
• 署名单位: University of London; University College London; Yale University; Stanford University; National Bureau of Economic Research
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.100.4.1432
• 发表日期: 2010
• 页码: 1432-1467
• 关键词: unemployment-insurance; covariance structure; income shocks; consumption; earnings; constraints; mobility; workers; MODEL

摘要

We specify a life-cycle model of consumption, labor supply and job mobility in an economy with search frictions. We distinguish different sources of risk, including shocks to productivity, job arrival, and job destruction. Allowing for job mobility has a large effect on the estimate of productivity risk. Increases in the latter impose a considerable welfare loss. Increases in employment risk have large effects on output and, primarily through this channel, affect welfare. The welfare value of programs such as Food Stamps, partially insuring productivity risk, is greater than the value of unemployment insurance which provides ( partial) insurance against employment risk. (JEL D91, J22, J31, J61, J64, J65)