Uncertainty, Redistribution, and the Labor Market
32 Pages Posted: 18 Oct 2013 Last revised: 5 Jun 2024
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: 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
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