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 …

We decompose earnings risk into contributions from hours and wage shocks. To distinguish between hours shocks, modeled … shocks explain 31% of total risk, permanent hours shocks 21%. Progressive taxation attenuates cross-sectional earnings risk …

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

literature on the issue, both results are consistent with the notion of wage compensation for risk-averse workers. However, our …. Apparently, those at the upper end of the conditional wage distribution have both higher risk-aversion and higher affection for …

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. …

We study workers' idiosyncratic earnings risk over the life-cycle using a German administrative data set. Positive and … incomplete markets model. Moreover, age-varying risk implies a linear increase in consumption inequality late in working life. …

is implemented. While policy discussion to date has focused on equitable outcomes, we propose framing risk equity … policies in terms of equitable risk tradeoff rates based on six policy guidelines. The starting point for ex ante evaluation of … equity for mortality risk policies should be the symmetric application of the value of a statistical life (VSL) to all groups …

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

-validation ; kernel regression ; Monte Carlo simulation …