Reference : Welfare-Based Income Insecurity in the US and Germany: Evidence from Harmonized Panel Data
Scientific journals : Article
Business & economic sciences : Social economics
Welfare-Based Income Insecurity in the US and Germany: Evidence from Harmonized Panel Data
d'ambrosio, Conchita mailto [University of Luxembourg > Faculty of Language and Literature, Humanities, Arts and Education (FLSHASE) > Integrative Research Unit: Social and Individual Development (INSIDE) >]
Rohde, Nicholas [Griffith University]
Tang, Kam Ki [University of Queensland]
Osberg, Lars [Dalhousie University]
Rao, Prasada [University of Queensland]
Journal of Economic Behavior and Organization
Yes (verified by ORBilu)
[en] Economic Insecurity ; Income Risk ; Panel Data
[en] This paper develops normative approaches for measuring individual-level income insecurity. Using concepts derived from Expected Utility Theory and Prospect Theory, we build a suite of measures designed to capture various facets of psychologically distressing income risk. We present an application for the US and Germany from 1993-2013, employing conditionally heteroskedastic fixed-effects models to generate predictive densities for future incomes. Our results reveal much higher levels of income risk in the US relative to Germany, which can be mostly attributed to a higher level of autonomous, time-invariant volatility. State-by-state variations in liberal/conservative political administrations partially explain our results, and we find some evidence that trade exposure is a contributing factor in the US.
Researchers ; Students
FnR ; FNR12677653 > Conchita D'Ambrosio > FESI > Financial Strain and Economic Instability: Effects on Wellbeing and Behaviour over the Life Course > 01/09/2019 > 31/08/2022 > 2018

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