In this paper we use a direct measure of individual risk-aversion to examine the relationship
between risk-aversion and unemployment. The traditional search model predicts that more
risk-averse individuals have lower reservation wages and thus are less likely to be observed
in unemployment. Our findings, however, do not support this prediction: on the contrary our
data suggest that more risk-averse individuals are more likely to be unemployed.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.