This paper investigates the role that idiosyncratic uncertainty plays in shaping social preferences over the degree of …

increases in risk taking. Where we can separately identify changes in risk-independent performance and risk taking, our … increases in risk taking. These effects are concentrated among those closest to the margin of elimination and among lower …

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 …

shocks to the first and second moments of idiosyncratic risk on macroeconomic outcomes. An increase in demand uncertainty …