We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect crucially depends on the income risk. The interaction effect...

In this paper we investigate the effect of Donald Trump's campaign for coal in his successful race for the White House in 2016. Using a spatial Durbin model we estimate the effect of coal production on the Republicans vote share in the US Presidential Election of 2016 on the county level. To...

The statutory pension system is still the most important income source among seniorcitizens in Germany. Due to increasing disruptions in employment biographies since the1970s and due to the mass unemployment in Eastern Germany since the 1990s, there isa growing fear of post-retirement poverty in...

In this paper, we contribute to the literature on the impact of the unemployment benefit on (reservation) wages. We use the German BA-Employment Panel (2008) to identify the effect of a reduced unemployment benefit due to the labor market reform of 2005 in Germany. Using this unique experiment,...

We examine whether income and unemployment risks are compensated by individual wages. Using a portfolio approach we show that the marginal income risk effect on wages is always positive whereas the marginal unemployment risk effect crucially depends on the income risk. The interaction effect...

We examine the impact of lay-off risks on wages. Portfolio as well as search theoreticmodelling predicts higher exogenous lay-off risks to go along with higher wages. But,an impact of wages on lay-off risks (e.g., endogenous job destruction) is also plausible.Using the German BA Employment Panel...

As a new approach we study individual wage compensations due to income risksmeasured by the variance and skewness of the wage distributions in different occupational groups. Using German administrative panel data and estimating a fixed effects model we confirm the expected positive effect of the...