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• W1593271754 abstract "We study a general equilibrium model where agents’preferences and productivity depend on their health status, and indivisible occupational choices a¤ect health risks. We show that e¢ ciency typically requires agents of the same type to obtain di¤erent expected utility when assigned to di¤erent occupations. If health mainly a¤ects production capabilities, workers with riskier jobs must get higher expected utilities under mild conditions. The same holds when health mainly a¤ects preferences, provided that health and consumption (income) are su¢ ciently good substitutes (i.e. if health henancing consumption activities are su¢ ciently e¤ective) ; while the converse obtains if health and consumption goods are complements (i.e. if health henancing consumption activities are not very e¤ective) . As a corollary, compensating wage di¤erentials which equalize the utilities of workers in di¤erent jobs are generally incompatible with e¢ ciency. Competitive equilibria are …rst best if lottery contracts are enforceable, but typically not when agents can trade only assets with deterministic payo¤s. Finally, we show that that, absent asymmetric information, there exist deterministic transfers policies which allow to achieve ex ante e¢ ciency. By implementing cross subsidies across health insurance contracts, these policies subsidize occupations whose workers must obtain higher utility levels in the optimum." @default.
• W1593271754 created "2016-06-24" @default.
• W1593271754 creator A5026713109 @default.
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• W1593271754 date "2005-07-15" @default.
• W1593271754 modified "2023-09-27" @default.
• W1593271754 title "Competitive occupational choices with endogenous health risks" @default.
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• W1593271754 hasPublicationYear "2005" @default.
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