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 …

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 …

We estimate the changes in US male labor market risk over the last three decades in a model of endogenous labor supply … a life-cycle model with search frictions, we show that the estimated changes in risk can account for 85 percent of the … increase in within group wage inequality. The welfare costs of rising risk are small. …

This paper analyzes the optimal response of the social insurance system to a rise in labor market risk. To this end, we … develop a tractable macroeconomic model with risk-free physical capital, risky human capital (labor market risk) and … (human capital) risk increases social welfare if the government adjusts the tax-and-transfer system optimally. Finally, we …

While uncertainty abounds in almost any decision on investment in schooling, it is mostly ignored in research and … virtually absent in labour economics text books. This paper documents the scope for risk, discusses the tough disentanglement of … heterogeneity and risk, surveys the analytical models, laments the absence of a good workhorse model and points out the challenges …

) insurance against employment risk and no insurance against persistent shocks. -- Uncertainty ; life-cycle models ; unemployment … frictions that allows us to distinguish between different sources of risk and to estimate their effects. The sources of risk are …. Estimates of productivity risk, once we control for employment risk and for individual labour supply choices, are substantially …

parametric and non-parametric measures to capture expected wage risk. These wage risk measures are unfettered by heterogeneity … which handicapped the use of actual market wage dispersion as risk measure in earlier studies. Students in our sample … anticipate that the market provides compensation for risk, as has been established with Risk Augmented Mincer earnings equations …

determining the cyclical properties of labor market risk. -- Life-cycle risk ; uncertainty fluctuations ; business cycle …, but with increments being smaller in the European data. Third, we find that wage risk is procyclical in Germany while it …

for coping with uninsured risk. Consistent with a model of a farm household with a binding subsistence constraint, we show …, household responses to uninsured risk appear to be consistent with a simple framework in which household members are allocated …