An Empirical Note on the Relationship between Unemployment and Risk-Aversion

In this paper we use a direct measure of individual risk-aversion to examine the relationship between risk-aversion and unemployment. Contrary to what the simple search model predicts, we observe that more risk-averse individuals are more likely to be unemployed. We present extensions of the search model that can reconcile the theory with the relationships observed in the data.

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Year of publication:	2004-08
Authors:	Diaz-Serrano, Luis ; O'Neill, Donal
Institutions:	Department of Economics, National University of Ireland
Subject:	Unemployment \| job-search \| risk-aversion

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Extent:	application/pdf
Series:	Economics, Finance and Accounting Department Working Paper Series.
Type of publication:	Book / Working Paper
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005424469