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| Gallipoli, Giovanni; Turner, Laura. |
| What are idiosyncratic shocks and how do people respond to them? This paper starts from the observation that idiosyncratic shocks are experienced at the individual level, but responses to shocks can encompass the whole household. Understanding and accurately modeling these responses is essential to the analysis of intra-household allocations, especially labor supply. Using longitudinal data from the Canadian Survey of Labour and Income Dynamics (SLID) we exploit information about disability and health status to develop a life-cycle framework which rationalizes observed responses of household members to idiosyncratic shocks. Two puzzling findings associated to disability onset motivate our work: (1) the almost complete absence of `added worker' effects... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Idiosyncratic Risk; Disability; Life Cycle Labor Supply; Intrahousehold Insurance; Labor and Human Capital; D13; I10; J12; J22. |
| Ano: 2009 |
URL: http://purl.umn.edu/55323 |
