Cyclical labour income risk in Great Britain

This paper provides new evidence on the cyclical behaviour of household labour income risk in Great Britain and role social insurance policy mitigating against this source risk. To achieve this, we decompose stochastic idiosyncratic into its transitory persistent components. We focus our analysis captured by second to fourth moments probability distribution shocks component income. find that increases during contractions via changes third central income, whereas variance remains acyclical. also economic has reduced level exposure increase benefits rather than tax policies.