premium. Intuitively, a rise in uninsured wage risk increases precautionary savings, thereby boosting capital accumulation …, individual wage risk has also increased. This paper proposes a mechanism through which a rise in wage risk increases the skill … that the rise in wage risk observed between 1967 and 2010 increases the skill premium significantly. This finding is robust …

This paper presents evidence from a large-scale study on gender differences in expected wages before labor market entry … to roughly half a million Euros. Our findings further suggest that expected wages relate to expected asking and … reservation wages and that a difference in plans about "boldness" during prospective wage negotiations pertains to gender …

Under conditions of risk it makes a difference whether the discount rate is determined as an expected present or as an …

potentially loss averse around their expected outcome make risky investments in education and we draw on optimal tax theory to … explore the design of policy. The model highlights the critical roles played by (i) the relationship between behavioural risk … preferences, standard risk aversion and labour supply behaviour, (ii) the risk properties of education, and (iii) the degree of …

-probability extreme events on environmental policy in a continuous-time real options model with "tail risk". In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies. -- climate policy ; extreme events …

assumption of (intertemporal) risk neutrality reduces the growth effect in social discounting and significantly amplifies the … importance of risk and correlation. Second, debate and models largely overlook the difference in attitude with respect to risk … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …