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It has been argued that rare economic disasters can explain most asset pricing puzzles. If this is the case, perceived … the perceived risk of disasters (both probability and expected size) that is consistent with observed portfolios and … a college degree can be partially explained by expectations of stock market disasters only if one allows for a large …
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We exploit panel data and large, abrupt, and unusual dislocations of Indonesian workers in the wake of the Asian Financial Crisis to investigate the robustness and persistence of inter-industry wage differentials (IWDs). Unobserved worker characteristics explain 36% of IWDs. IWDs persist through...
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