at risk in the euro area and in the United States. We model the asymmetry of the shocks to changes in the unemployment … risk defined as the possible joint event of large increases in the unemployment rate and large annual rates of inflation … rate as a function of real activity and financial risk factors. We find that the conditional distribution of the changes in …

(2005). We extend it by unemployment risk using Markov chains to model the transition between different employment states … systems as those established in the EU are able to offset the negative impact of unemployment risk on the portfolio …, short-term as well as long-term unemployment. This allows us to examine the effects of persistence in the unemployment …

Black Americans face higher cyclical unemployment risk than white Americans: job-finding rates during recessions are … lower and the risk of becoming long-term unemployed is higher. Differences in unemployment risk across Black and white … Americans imply that Black Americans optimally invest less in risky assets. We show that differences in unemployment risk can …

Unemployment leads to large and persistent income losses for workers. Higher unemployment in the labor market therefore … perspectives. Using data from the Current Population Survey (CPS), I show that a 1 percentage point increase in unemployment rate … the welfare losses of workers due to higher unemployment in the labor market to older, retired households by reducing …