Cross-sectional earnings risk and occupational sorting: The role of risk attitudes |
| |
Authors: | Holger Bonin Thomas Dohmen Armin Falk David Huffman Uwe Sunde |
| |
Institution: |
Received 16 January 2006; |
| |
Abstract: | This paper investigates to what extent individuals' risk preferences are correlated with the cross-sectional earnings risk of their occupation. We exploit data from the German Socio-Economic Panel, which contains a direct survey question about willingness to take risks that has been shown to be a behaviorally valid measure of risk aversion. As a measure of earnings risk, we use the cross-sectional variation in earnings that is left unexplained by human capital variables in Mincerian wage regressions. Our evidence shows that individuals with low willingness to take risks are more likely to work in occupations with low earnings risk. This pattern is found regardless of the level of occupation categories, region, gender and labor market experience. |
| |
Keywords: | Occupational choice Sorting Risk preferences SOEP Earnings risk |
本文献已被 ScienceDirect 等数据库收录! |