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 …-time income by 11%, a wage shock by 13%. …

frictions that allows us to distinguish between different sources of risk and to estimate their effects. The sources of risk are … heterogeneity. Our model allows for four main social insurance programmes. In contrast to simpler models that attribute all income …. Estimates of productivity risk, once we control for employment risk and for individual labour supply choices, are substantially …

Courts typically base compensation for loss of income in personal injury cases on either mean or median work income …. Yet, quantatively, mean and median incomes are typically very different. For example, in the US median income is 65 … percent of mean income. In this paper we use economic theory to determine the relation between the appropriate make …

-durable consumption. Introducing labor income risk into the model does not necessarily increase the importance of market insurance if the … in a model with non-durable and durable consumption. The stock of the durable is exposed to risk against which households … fluctuations of the predetermined durable stock. Second we solve the model numerically. With deterministic labor income the …

Income Labour Dynamics of Australia (HILDA) survey to examine the impact of job displacement and serious health problems on …

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 … worth tackling: document ex ante risk that investors face, develop a tractable and malleable analytical model and integrate …