Open access
Date
2012-02Type
- Working Paper
ETH Bibliography
yes
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Abstract
Using administrative panel data from Norway, we investigate the development of household labor income, nancial wealth and asset holdings over a nine-year period surrounding job loss. Consistent with a simple theoretical model, the data show precautionary saving and a shift toward safer assets in the years leading up to unemployment, and depletion of savings during unemployment. This suggests that at least some households can foresee and prepare for upcoming unemployment, which indicates that private savings can to some extent serve as a substitute for publicly provided unemployment insurance. Show more
Permanent link
https://doi.org/10.3929/ethz-a-006999200Publication status
publishedJournal / series
KOF Working PapersVolume
Publisher
KOF Swiss Economic Institute, ETH ZurichSubject
UNEMPLOYMENT; Portfolio allocation; HAUSWIRTSCHAFT + HAUSHALTSWISSENSCHAFT; Optimal unemployment insurance; Consumption smoothing; Unemployment; ARBEITSLOSIGKEIT; Precautionary saving; HOME ECONOMICS + DOMESTIC SCIENCES; Household portfoliosOrganisational unit
03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
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ETH Bibliography
yes
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