normality. For the bottom earners, large income changes are driven equally by hours and wages which is consistent with …

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 …

ex ante identical households and the no-risk case with heterogeneous abilities come out as special cases. -- optimal … income ; taxation ; wage risk …

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 …

funded and unfunded systems when there are sources of uninsurable risk that are allocated in different ways by different …

, 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 …

This paper examines the relationship between idiosyncratic risk in labour income and fluctuations in aggregate labour … BHPS sub-sample of Understanding Society for 2010-2014. We measure idiosyncratic risk in labour income by the relevant … idiosyncratic risk increases during contractions in the labour market. Furthermore, we find evidence of insurance, both at the …

, as well as the degree of risk aversion. Since the consumption uncertainty associated with compensation generally exceeds …