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Inter-Sectorial Risk Pooling and Wage Distributions

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Author Info
St-Amour, Pascal ()
Vencatachellum, Désiré

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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.

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File URL: http://www.ecn.ulaval.ca/w3/recherche/cahiers/1998/9818.pdf
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Publisher Info
Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9818.

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Date of creation: 1998
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Handle: RePEc:lvl:laeccr:9818

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Related research
Keywords: risk pooling; family transfers;

Find related papers by JEL classification:
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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This page was last updated on 2009-12-15.

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