abstract: 'Over the past few decades, the skilled-unskilled hours differential for

  U.S. men increased when the skill premium rose sharply, in contrast with

  dominant income effects. Based on PSID data, we show that over the

  1967-2000 period, skilled men experienced a three times larger increase

  in wage volatility than unskilled men. With the rise in wage volatility,

  our general equilibrium incomplete markets model generates a 2.7 hours

  increase in the hours differential whereas it increased by 1.4 hours in

  the data. We find that hours adjustments are important for

  self-insurance in the short run, whereas precautionary savings play a

  crucial role eventually.'
affiliation: 'You, HM (Corresponding Author), Hanyang Univ, Coll Econ \& Finance,
  222 Wangsimni Ro, Seoul 04763, South Korea.

  Seoul Natl Univ, Seoul, South Korea.

  Ewha Womans Univ, Seoul, South Korea.

  Hanyang Univ, Seoul, South Korea.'
author: Hong, Jay H. and Seok, Byoung Hoon and You, Hye Mi
author-email: hyemi.you@gmail.com
author_list:
- family: Hong
  given: Jay H.
- family: Seok
  given: Byoung Hoon
- family: You
  given: Hye Mi
da: '2023-09-28'
doi: 10.1111/iere.12363
eissn: 1468-2354
files: []
issn: 0020-6598
journal: INTERNATIONAL ECONOMIC REVIEW
keywords-plus: 'CONSUMPTION INEQUALITY; PRECAUTIONARY SAVINGS; TRENDS; INCOME;

  PARTICIPATION; EMPLOYMENT; EARNINGS; RISK'
language: English
month: MAY
number: '2'
number-of-cited-references: '44'
orcid-numbers: You, Hye Mi/0000-0003-3308-1743
pages: 595-630
papis_id: 08a62af566e7d34697ba618ad1ba150a
ref: Hong2019wagevolatility
times-cited: '2'
title: WAGE VOLATILITY AND CHANGING PATTERNS OF LABOR SUPPLY
type: article
unique-id: WOS:000468796500004
usage-count-last-180-days: '1'
usage-count-since-2013: '10'
volume: '60'
web-of-science-categories: Economics
year: '2019'