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Inter-Sectorial Risk Pooling and Wage Distributions

Author

Listed:
  • St-Amour, Pascal
  • Vencatachellum, Désiré
Abstract
This paper develops a model where two agents in different sectors face uncorrelated income risks and mutually self-insure. We discuss how the rent arising from risk pooling modifies the wage distribution in the sector where the employer behaves as a monopsonist.

Suggested Citation

  • St-Amour, Pascal & Vencatachellum, Désiré, 1998. "Inter-Sectorial Risk Pooling and Wage Distributions," Cahiers de recherche 9818, Université Laval - Département d'économique.
  • Handle: RePEc:lvl:laeccr:9818
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    File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1998/9818.pdf
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    More about this item

    Keywords

    risk pooling; family transfers;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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