microeconomics, econometrics, models, finance, investmentIs there a difference between human capital risk premium and labor income risk? Can we use labor income risk in place of human capital risk premium? Is there a simple formula to calculate labor income risk, with minimum inputs?
The context is that I am working on impact of human capital (present value of all future labor income) on asset allocation decision of an individual, and having some problems in human capital risk premium calculations.
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