WAGE VOLATILITY AND CHANGING PATTERNS OF LABOR SUPPLY
- 주제(기타) Economics
- 설명문(일반) Seoul Natl Univ, Seoul, South Korea; Ewha Womans Univ, Seoul, South Korea; Hanyang Univ, Seoul, South Korea
- 등재 SSCI, SCOPUS
- 발행기관 WILEY
- 발행년도 2019
- URI http://www.dcollection.net/handler/ewha/000000160515
- 본문언어 영어
- Published As http://dx.doi.org/10.1111/iere.12363
초록/요약
Over the past few decades, the skilled-unskilled hours differential for U.S. men increased when the skill premium rose sharply, in contrast with dominant income effects. Based on PSID data, we show that over the 1967-2000 period, skilled men experienced a three times larger increase in wage volatility than unskilled men. With the rise in wage volatility, our general equilibrium incomplete markets model generates a 2.7 hours increase in the hours differential whereas it increased by 1.4 hours in the data. We find that hours adjustments are important for self-insurance in the short run, whereas precautionary savings play a crucial role eventually.
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