Uncertainty, Redistribution, and the Labor Market

32 Pages Posted: 18 Oct 2013

See all articles by Casey B. Mulligan

Casey B. Mulligan

University of Chicago; National Bureau of Economic Research (NBER)

Date Written: October 2013

Abstract

Uncertainty and its composition can affect the demand for social insurance, and thereby the labor market. This paper shows that small to medium-sized increases in uncertainty or risk aversion are enough to recommend an expansion of the safety net that would be broadly similar to the actual safety net expansions, which significantly depressed the labor market. Labor market effects of uncertainty through investment and insurance channels are also examined with employer and employee labor wedges.

Suggested Citation

Mulligan, Casey B., Uncertainty, Redistribution, and the Labor Market (October 2013). NBER Working Paper No. w19553. Available at SSRN: https://ssrn.com/abstract=2342050

Casey B. Mulligan (Contact Author)

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