-sections between wages and profitability. The alternative explanation of risk sharing between workers and employers has not been tested … insurance to employers: when firms are hit by temporary shocks the effect on profits is cushioned by risk sharing with workers … wages. …

insurance in rural communities usually requires a structural model of household behavior under risk. One of the few empirical … would not benefit from the introduction of formal weather insurance. In this paper we investigate how models such as theirs … conclusion that insurance would not be welfare improving. …