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In recent years many commentators and social scientists have claimed that individuals and households in Western societies are facing increased economic insecurities. One alleged force behind this trend is the downscaling of welfare state mechanisms that ameliorate the negative economic consequences of critical events such as unemployment or separation. These claims have rarely been tested empirically, however. The project will therefore use German and US panel data to study the changing consequences of key life risks such as unemployment, illness, separation, and single parenthood.