Not logged in.

Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Saving and Portfolio Allocation Before and After Job Loss
Organization Unit
Authors
  • Christoph Basten
  • Andreas Fagereng
  • Kjetil Telle
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Journal of Money, Credit and Banking
Publisher Wiley-Blackwell Publishing, Inc.
Geographical Reach international
ISSN 0022-2879
Volume 48
Number 2-3
Page Range 293 - 324
Date 2016
Abstract Text We investigate the development of household labor income, financial wealth, and asset holdings over a 9-year period around job loss, using unique administrative panel data from Norway. Consistent with predictions from theory, the data show additional saving and a shift toward safer assets in the years leading up to unemployment, and depletion of savings after job loss. In the years after job loss, the households' after-tax labor income is reduced by about USD 12,500. Over the same time period, households deplete USD 3,000 of their financial assets, of which one third is accumulated prior to the job loss. This suggests that at least some households can foresee and prepare for the upcoming unemployment, which indicates that private savings can, to some extent, serve as a substitute for publicly provided unemployment insurance.
Digital Object Identifier 10.1111/jmcb.12301
Other Identification Number merlin-id:16127
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)