publ-mit-podpubl-mit-podSchmitz, SebastianRostam-Afschar, DavudJessen, Robin2024-04-082024-04-082016-07-062016https://hohpublica.uni-hohenheim.de/handle/123456789/6036We quantify the importance of precautionary labor supply using data from the German Socio-Economic Panel (SOEP) for 2001-2012. We estimate dynamic labor supply equations augmented with a measure of wage risk. Our results show that married men choose about 2.5% of their hours of work or one week per year on average to shield against unpredictable wage shocks. This implies that about 26% of precautionary savings are due to precautionary labor supply. If self-employed faced the same wage risk as the median civil servant, their hours of work would reduce by 4%.enghttp://opus.uni-hohenheim.de/doku/lic_mit_pod.phpWage riskLabor supplyPrecautionary savingLife cycleDynamic panel data330LohnArbeitArbeitsmarktSparverhaltenDeutschlandWorkingPaper473613697urn:nbn:de:bsz:100-opus-12346