Tripartite contracts between workers, a firm, and an insurance broker Pareto dominate the usual bilateral arrangements if coalitions are not feasible. They do this by allowing the broker to run surpluses over a reservation expected utility in some states and deficits in others. We show that...

In the presence of asymmetric information, adding a public unemployment insurance to labor contracts is potentially Pareto improving. Unfortunately, most successful mechanisms are manipulable by coalitions. This leads us to design coalition incentive compatible unemployment insurance systems....