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Prof. Jonna Olsson

NHH Norwegian School of Economics, Norway

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Meeting number: 2742 209 3389
Meeting password: 273624

Authors: Jonna Olsson, Timo Boppart and Per Krusell

Abstract: A production efficiency perspective naturally leads to the prescription that more productive individuals should work more than less productive individuals. Yet, systematic differences in actual hours worked across high- and low-wage individuals are barely noticeable. We highlight that the insurance available to households is an important determinant behind this fact. Using a dynamic heterogeneous-agent model with insurance frictions, income effects calibrated to match aggregate hours across time and space, and financial frictions that deliver realistic wealth dispersion, we report stark effects of insurance: perfect insurance would raise aggregate labor productivity by 9.6 percent and decrease hours worked by 7.7 percent. 

The Annual CERGE-EI Alumni Meetup in Bratislava will take place on Thursday, November 13, from 6 PM at the Bratislava Flagship restaurant. Food and drinks provided.

We look forward to catching up, sharing the latest news from CERGE-EI, discussing upcoming events, and discussing our future plans and ideas for development. We’ll also be joined by Iva Kleinová, whom you may remember from her time as Director of the Master's in Applied Economics program, and who is now responsible for our recruitment strategy.

We look forward to seeing you there!