An empirical analysis of income risk and social insurance policy in the United Kingdom

This thesis examines the level of income risk in conjunction with private and social insurance mechanisms in the United Kingdom. In particular, I focus on the evolution of income risk and insurance mechanisms during the last decade. This thesis emphasises the importance of measuring the heterogeneity of risk and the nature of two insurance mechanisms (i) marriage and (ii) social insurance generated through welfare policies. I complement these findings with a discussion on how adverse income shocks affect welfare.