RT Generic
T1 How important is precautionary labor supply?
A1 Jessen,Robin
A1 Rostam-Afschar,Davud
A1 Schmitz,Sebastian
WP 2016/07/06
AB We quantify the importance of precautionary labor supply using data from the German Socio-Economic Panel (SOEP) for 2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married men choose about 2.5% of their hours of work or one week per year on average to shield against unpredictable wage shocks. This implies that about 26% of precautionary savings are due to precautionary labor supply. If self-employed faced the same wage risk as the median civil servant, their hours of work would reduce by 4%.
K1 Lohn
K1 Arbeit
K1 Arbeitsmarkt
K1 Sparverhalten
K1 Deutschland
PP Hohenheim
PB Kommunikations-, Informations- und Medienzentrum der Universität Hohenheim
UL http://opus.uni-hohenheim.de/volltexte/2016/1234