Assignment:
If employers are risk-neutral and employees are risk-averse, why is a salary contract optimal, ignoring tax and asymmetric information considerations? Under what conditions in employee compensation contracting are tax and risk-sharing considerations in conflict? As a result of these conflicts, do employees bear more risk than if the goal were simply to allocate risks efficiently?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.