My da|ra Login

Detailed view

metadata language: English

Replication data for: Labor Market Uncertainty and Portfolio Choice Puzzles

Resource Type
  • Chang, Yongsung
  • Hong, Jay H.
  • Karabarbounis, Marios
Publication Date
  • Abstract

    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.
  • Is supplement to
    DOI: 10.1257/mac.20160207 (Text)
  • Chang, Yongsung, Jay H. Hong, and Marios Karabarbounis. “Labor Market Uncertainty and Portfolio Choice Puzzles.” American Economic Journal: Macroeconomics 10, no. 2 (April 2018): 222–62.
    • ID: 10.1257/mac.20160207 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Chang, Yongsung; Hong, Jay H.; Karabarbounis, Marios (2018): Replication data for: Labor Market Uncertainty and Portfolio Choice Puzzles. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.