Arbeitspapier
Hedging labor income risk
We use a detailed panel data set of Swedish households to investigate the relation between their labor income risk and financial investment decisions. In particular, we relate changes in wage volatility to changes in the portfolio holdings for households that switched industries between 1999 and 2002. We find that households do adjust their portfolio holdings when switching jobs, which is consistent with the idea that households hedge their human capital risk in the stock market. The results are statistically and economically significant. A household going from an industry with low wage volatility to one with high volatility will ceteris paribus decrease its portfolio share of risky assets by up to 35%, or USD 15,575.
- Language
-
Englisch
- Bibliographic citation
-
Series: Sveriges Riksbank Working Paper Series ; No. 255
- Classification
-
Wirtschaft
- Subject
-
Haushaltseinkommen
Portfolio-Management
Arbeitsplatzwechsel
Humankapital
Hedging
Schweden
- Event
-
Geistige Schöpfung
- (who)
-
Betermier, Sebastien
Jansson, Thomas
Parlour, Christine A.
Walden, Johan
- Event
-
Veröffentlichung
- (who)
-
Sveriges Riksbank
- (where)
-
Stockholm
- (when)
-
2011
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Betermier, Sebastien
- Jansson, Thomas
- Parlour, Christine A.
- Walden, Johan
- Sveriges Riksbank
Time of origin
- 2011
Other Objects (12)
Housing choices and labor income risk
Financial buffers, unemployment duration and replacement labor income
Exchange Rate Exposure, Foreign Involvement and Currency Hedging of Firms - Some Swedish Evidence
Uncertain pension income and household saving
Schweden, 1 Krone
Schweden, 1 Krone
Geldschein, 1 Krona, 1874
Geldschein, 1 Krona, 1914
Labor shortages and wage growth
Price level targeting and risk management
Price level targeting and risk management
The Effects of Permanent Technology Shocks on Labor Productivity and Hours in the RBC model
Housing choices and labor income risk
Financial buffers, unemployment duration and replacement labor income
Exchange Rate Exposure, Foreign Involvement and Currency Hedging of Firms - Some Swedish Evidence
Uncertain pension income and household saving
Schweden, 1 Krone
Schweden, 1 Krone
Geldschein, 1 Krona, 1874
Geldschein, 1 Krona, 1914
Labor shortages and wage growth
Price level targeting and risk management
Price level targeting and risk management
The Effects of Permanent Technology Shocks on Labor Productivity and Hours in the RBC model
Housing choices and labor income risk
Financial buffers, unemployment duration and replacement labor income
Exchange Rate Exposure, Foreign Involvement and Currency Hedging of Firms - Some Swedish Evidence
Uncertain pension income and household saving
Schweden, 1 Krone
Schweden, 1 Krone
Geldschein, 1 Krona, 1874
Geldschein, 1 Krona, 1914
Labor shortages and wage growth
Price level targeting and risk management
Price level targeting and risk management