Working PaperFirst publicationPublished version DOI: 10.48548/pubdata-2022

The link between career risk aversion and unemployment duration

Evidence of non-linear and time-depending pattern

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Chronological data

Date of first publication2010-10-20
Date of publication in PubData 2025-07-31

Language of the resource

English

Related external resources

Part of ISSN: 1860-5508
Working Paper Series in Economics

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Other contributors

Abstract

In this study, we investigate the nexus between career risk aversion and unemployment duration based on German survey data (GSOEP). Using a direct measurement of career risk aversion, we do not find a statistically significant linear effect from risk aversion on unemployment duration. However, we find significant effects when controlling for a non-linear or time varying correlation between risk aversion and unemployment duration. Our results show that risk aversion is important when deciding when to leave unemployment. This research takes into account the high complexity involved in how risk aversion enters an individual’s decision process during a job search.

Keywords

Unemployment; Risk Aversion; Duration Model

Number of the series contribution

189

More information

DDC

330 :: Wirtschaft

Creation Context

Research