%0 Report
        %A Diaz-Serrano, Luis
%A O'Neill, Donal
        %T The Relationship between Unemployment and Risk-Aversion
        %D 2004
        %8 2004 Jul
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1214
        %U https://www.iza.org/publications/dp1214
        %X In this paper we use a direct measure of individual risk-aversion to examine the relationship
between risk-aversion and unemployment. The traditional search model predicts that more
risk-averse individuals have lower reservation wages and thus are less likely to be observed
in unemployment. Our findings, however, do not support this prediction: on the contrary our
data suggest that more risk-averse individuals are more likely to be unemployed.
        %K unemployment
%K job-search
%K risk-aversion