Insurable Interest Exclusion and GE Welfare Spillover
Marketing insurance solely to cultivators (25.6% coverage) reduces drought wages by 0.63 log points at the 30th percentile of rainfall and 0.23 log points at median rainfall [27]. Jointly offering insurance to both cultivators (25.6%) and laborers (31.8%) eliminates wage volatility, raising median rainfall wages by 11.7% and 80th percentile wages by 19% [30].