progressive income tax in particular, provides insurance against the risk of uncertain future income. By providing for high taxes … of potential after-tax income relative to a lump-sum tax. This insurance function is distinct from the redistributive … income tax role in a federal system, given both its redistributive and insurance functions. The standard view in the …

spells and (ii) reduced reemployment wages. Although full insurance requires both unemployment benefits and wage insurance …, supply difficulties limit actual-loss insurance, and separation packages typically include partial unemployment insurance and … integration of these insurance instruments in this complex planning environment. One important implication: given the structure of …

The purpose of this note is to describe the lottery- and insurance-market equilibrium in an economy with non …-convex labor supply decision, unobservable effort, and incentive ("fair") wages. The presence of indivisible labor creates a market … incompleteness, which requires that an insurance market for employment be put in operation to "complete" the market. …