Please use this identifier to cite or link to this item: https://hdl.handle.net/10620/18513
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dc.contributor.authorPenrose, Gabrielle-
dc.contributor.authorLa Cava, Gianni-
dc.date.accessioned2021-08-20T01:46:12Z-
dc.date.available2021-08-20T01:46:12Z-
dc.date.issued2021-08-
dc.identifier.urihttps://hdl.handle.net/10620/18513-
dc.description.abstractWorkers are partly able to predict when they will lose their jobs. However, they typically overpredict the probability of job loss, particularly during economic downturns. The unemployed typically underestimate how long they will be unemployed for. We link these insights on worker expectations of future job prospects to household spending decisions at unemployment. At unemployment, households reduce total spending by around 9 per cent on average. Workhorse consumption models, such as those based on the permanent income hypothesis, predict that households should reduce spending by more in response to unexpected job loss events than to expected ones. Contrary to this, we find that households reduce spending by similar amounts regardless of whether they expect job loss or not. We also find some evidence that the spending response is larger for households that are liquidity constrained, and for households that have been unemployed for longer.en
dc.publisherReserve Bank of Australiaen
dc.titleJob Loss, Subjective Expectations and Household Spendingen
dc.typeReports and technical papersen
dc.identifier.doi10.47688/rdp2021-08en
dc.identifier.urlhttps://www.rba.gov.au/publications/rdp/2021/2021-08.htmlen
local.contributor.institutionReserve Bank of Australiaen
local.contributor.institutionReserve Bank of Australiaen
local.subject.policyTheses and student dissertationsen
dc.identifier.surveyHILDAen
dc.description.institutionReserve Bank of Australiaen
dc.title.reportRBA Research Discussion Papersen
dc.description.keywordsUnemploymenten
dc.description.keywordsJob uncertaintyen
dc.description.keywordsSubjective expectationsen
dc.description.keywordsConsumptionen
dc.description.pages43en
local.profile.orcidhttps://orcid.org/0000-0003-0128-372Xen
dc.publisher.citySydneyen
local.identifier.emailgiannilacava@gmail.comen
local.identifier.emailpenroseg@rba.gov.auen
dc.subject.dssHealth and wellbeingen
dc.subject.dssIncome, wealth and financesen
dc.subject.dssLabour marketen
dc.relation.surveyHILDAen
item.openairetypeReports and technical papers-
item.grantfulltextnone-
item.fulltextNo Fulltext-
item.openairecristypehttp://purl.org/coar/resource_type/c_18cf-
item.cerifentitytypePublications-
Appears in Collections:Technical Papers
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