Replication data for: Labor Market Uncertainty and Portfolio Choice Puzzles

Name: Replication data for: Labor Market Uncertainty and Portfolio Choice Puzzles
Published: 2018-04-01
License: This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.

Principal Investigator(s): View help for Principal Investigator(s) Jay H. Hong; Yongsung Chang; Marios Karabarbounis

Version: View help for Version V1

Name	File Type	Size	Last Modified
Data			08/03/2019 05:44:AM
LICENSE.txt	text/plain	14.6 KB	08/03/2019 01:45:AM

Project Citation:

Project Description

Summary: The standard life-cycle models of household portfolio choice have difficulty generating a realistic age profile of risky share. These models not only imply a high risky share on average but also a steeply decreasing age profile, whereas the risky share is mildly increasing in the data. We introduce age-dependent, labor market uncertainty into an otherwise standard model. A great uncertainty in the labor market—high unemployment risk, frequent job turnovers, and an unknown career path—prevents young workers from taking too much risk in the financial market. As labor market uncertainty is resolved over time, workers start taking more risk in their financial portfolios.

Scope of Project

JEL Classification:
      J31 Wage Level and Structure • Wage Differentials
      J63 Turnover • Vacancies • Layoffs
      D14 Household Saving • Personal Finance
      D81 Criteria for Decision-Making under Risk and Uncertainty
      D15 Intertemporal Household Choice • Life Cycle Models and Saving
      G11 Portfolio Choice • Investment Decisions

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V1 [2019-08-03]

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This work is licensed under an Other license created by the data depositor. Please refer to the LICENSE file, which should be located alongside the project data and documentation.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.