, as well as the degree of risk aversion. Since the consumption uncertainty associated with compensation generally exceeds … economic theory to address this issue. We find that the relation between the appropriate compensation and the mean and median …

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …-whole (full) compensation and mean and median work incomes. Given that consumption uncertainty associated with compensation …

percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …-whole (full) compensation and mean and median work incomes. Given that consumption uncertainty associated with compensation …

In this model of education, where individuals are exposed both to educational risk and to wage risk within the skilled … present risks is a dichotomic task: Wage risk is diversified ex post among the skilled by graduate taxation and skill …-specific tuition fees. Educational risk of failure and inequality between skilled and unskilled workers are mitigated ex ante by …

risk diversification across working-life wages in computing benefits. -- social security reforms ; uncertainty ; risk …This paper analyzes the welfare effects of the Italian social security system in an economy with uncertainty on wages … turns out to decrease ex-ante individual welfare, unless restrictions are assumed on retirement behavior. Overall, risk …

policy relevant outcomes and policy effects, that of the wage premia for fatal injury risk. Estimates of the overall hedonic …

model with idiosyncratic labor income risk. In our model economy, even a moderate earnings testing reduces individuals …

uncertainty has evolved since Mirrlees' original contribution. The literature on the income tax as a social insurance device is … more limited. It has largely assumed that households are ex ante identical so unequal earnings are due to uncertainty alone …. We provide a general treatment of the optimal income tax under uncertainty when households differ in ability. We …

How does risk affect saving? Empirical work typically examines the effects of detectible differences in risk within the … data. How these differences affect saving in theoretical models depends on the metric one uses for risk. For labor …-income risk, second-degree increases in risk require prudence to induce increased saving demand. However, prudence is not …

, individual wage risk has also increased. This paper proposes a mechanism through which a rise in wage risk increases the skill … premium. Intuitively, a rise in uninsured wage risk increases precautionary savings, thereby boosting capital accumulation … that the rise in wage risk observed between 1967 and 2010 increases the skill premium significantly. This finding is robust …