Family Labor Supply, Precautionary Behavior, Aggregate Saving and Employment

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Family Labor Supply and Aggregate Saving

I study the impact of idiosyncratic risk on savings and employment in a small open economy populated by two-member families. Families incur a fixed cost of participation when both members are employed. Because of market incompleteness and information asymmetries, this cost coupled with labor market frictions can generate multiple equilibria. In particular, there might be one equilibrium with hi...

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Aggregate Labor Supply

___________________________________________________________________ There have been tremendous advances in macroeconomics, following the introduction of labor supply into the field. Today it is widely acknowledged that labor supply matters for many key economic issues, particularly for business cycles and tax policy analysis. However, the extent to which labor supply matters for such questions ...

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Precautionary Saving and Precautionary Wealth

This is an entry for The New Palgrave Dictionary of Economics, 2nd Ed.

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Labor-Market Matching with Precautionary Savings and Aggregate Fluctuations∗

We analyze a Bewley-Huggett-Aiyagari incomplete-markets model with labor-market frictions. Consumers are subject to idiosyncratic employment shocks against which they cannot insure directly. The labor market has a Diamond-Mortensen-Pissarides structure: firms enter by posting vacancies and match with workers bilaterally, with match probabilities given by an aggregate matching function. Wages ar...

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Employment-Based Health Insurance, Uncertain Medical Expenses, and Aggregate Labor Supply∗

Using a general equilibrium life cycle model with endogenous labor supply and idiosyncratic risks in both income and medical expenses, we argue that employmentbased health insurance is an important reason why Americans work much more than Europeans. In contrast to Europeans, who get universal health insurance from the government, most working-age Americans get health insurance through their emp...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2006

ISSN: 1556-5068

DOI: 10.2139/ssrn.932887