Availability of (partial) insurance mechanisms is arguably important for the decision of (riskaverse) workers to start up a risky entrepreneurial venture. Using administrative data from Denmark, where unemployment insurance (UI) is available to both wage earners and self-employed on a voluntary...

We study risk behavior of Danish self-employed entrepreneurs, whose income risk may be driven by both exogenous factors and effort choice (moral hazard). Partial insurance is available through voluntary unemployment insurance (UI). Additional incentives to sign insurance contracts stem from a...

I show that conventional estimators based on the consumption Euler equation, extensively used in studies of intertemporal consumption behavior, produce inconsistent estimates of the effect of children on consumption if potentially binding credit constraints are ignored. As a more constructive...

The model of competing sellers in McAfee (1993) is applied to a labor market environment with heterogeneous workers, who differ by outside option and skill type, and heterogeneous firms, who differ by the amount of output produced when matched to each possible worker type. We derive both a...

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Individuals match on length and type of education. We investigate whether the systematic relationship between educations of partners is explained by opportunities (e.g. low search frictions) or preferences (e.g. complementarities in household production or portfolio optimization). We find that...

A growing literature seeks to explain differences in individuals’ self-reported satisfaction with their jobs. Most of the accumulated evidence so far has, however, been based on cross-sectional data and when panel data have been used, individual unobserved heterogeneity has been modelled...

It is straightforward to construct moment conditions for two-sided censored panel data regression models with strictly exogenous explanatory variables. The contribution of this note is to show that one set of these moment conditions uniquely identify the parameters of the model under a natural...

In this paper we investigate GMM-based unit root inference in an autoregressive panel data model with individual-specific levels. We consider tests based on GMM estimators of the AR parameter and moment condition tests. The limiting distributions of the corresponding test statistics are derived...