populated by a large number of long-lived, risk-averse households with homothetic preferences who can invest in risk … households less than half of human capital risk is insured and the welfare losses due to the lack of insurance range from 3 …

populated by a large number of long-lived, risk-averse households with homothetic preferences who can invest in risk … households less than half of human capital risk is insured and the welfare losses due to the lack of insurance range from 3 …

populated by a large number of long-lived, risk-averse households with homothetic preferences who can invest in risk … households less than half of human capital risk is insured and the welfare losses due to the lack of insurance range from 3 …

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 … unobservable effort choice affecting the distribution of human capital shocks (moral hazard). We show that constrained optimal …

analysis uses a tractable consumption-saving model with labor income risk and incomplete markets to relate income dynamics to … therefore (almost) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or …

households with children are under-insured against the risk that an adult member of the household dies. We develop a tractable … macroeconomic model with human capital risk, age-dependent returns to human capital investment, and endogenous borrowing constraints … capital risk. A calibrated version of the model can quantitatively account for the life-cycle variation of life …

households with children are under-insured against the risk that an adult member of the household dies. We develop a tractable … macroeconomic model with human capital risk, age-dependent returns to human capital investment, and endogenous borrowing constraints …

and income risk for workers of varying education levels. The authors' findings are as follows. The level of openness of an …Using data from Mexico, the authors study empirically the link between trade policy and individual income risk and the … extent to which this varies across workers of different human capital (education) levels. They use longitudinal income data …