feasible because agents can invest out of their wage income and out of their asset income. We also analyze the effects of a …

This paper assesses how a permanent shift from financing a public pay-as-you-go pension by direct (labour income …

2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married … wage risk as the median civil servant, their hours of work would reduce by 4%. …

We extend the canonical income process with persistent and transitory risk to shock distributions with left …-skewness and excess kurtosis, to which we refer as higher-order risk. We estimate our extended income process by GMM for household … show that in a standard incomplete-markets life-cycle model, first, higher-order risk has sizable welfare implications …