reciprocity and mutual obligations in the design of the welfare state. Unemployment benefits conditioned on work experience, no …

and hence too low unemployment compared to first best. This is due to a business-stealing externality. Raising workers …? bargaining power resolves this inefficiency. Unemployment benefits are a second best alternative to this policy. We establish … unemployment on the other hand. Both can be used for empirical testing. …

The study of optimal long-term care (LTC) social insurance is generally carried out under the utilitarian social … individuals or prematurely dead individuals. This paper revisits the design of optimal LTC insurance while adopting the ex post … optimal LTC social insurance is quite sensitive to the postulated social criterion. The optimal second-best social insurance …

Courts typically base compensation for loss of income in personal injury cases on either mean or median work income …-whole (full) compensation and mean and median work incomes. Given that consumption uncertainty associated with compensation … generally exceeds that associated with work income, we show that the appropriate make-whole compensation exceeds mean (and …

We report the results of a field experiment in which treated employers could not observe the compensation history of … intensively. They also responded by changing what kind of workers they evaluated: treated employers evaluated workers with 7 …% lower past average wages and hired workers with 16% lower past average wages. Conditional upon bargaining, workers hired by …

What is the appropriate lump-sum compensation for loss of work income in personal injury cases? Since generally future … work income is not known with certainty, compensation for its loss must be based on statistical considerations. Typically … economic theory to address this issue. We find that the relation between the appropriate compensation and the mean and median …

this interpretation of the ethics of responsibility and the ethics of compensation within a broad class of economic … ethics of compensation, and we report an impossibility result that clarifies the source of this conflict. …