On compensation for risk aversion and skewness affection in wages

Labour Economics

Volumn 14, Issue 6, 2007, Pages 938-956

  Hartog, Joop ^a   Vijverberg, Wim P M ^b  

^a UNIVERSITY OF AMSTERDAM   (Netherlands)

^b UNIVERSITY OF TEXAS AT DALLAS   (United States)

Author keywords

Risk; Skew; Wages

Indexed keywords

EID: 35448948783     PISSN: 09275371     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.labeco.2007.08.002     Document Type: Article

References (36)

1. Abowd J., and Ashenfelter O. Anticipated unemployment, temporary layoffs, and compensating wage differentials. In: Rosen S. (Ed). Studies in Labor Markets (1981), University of Chicago Press for NBER, Chicago 141-170
2. Abowd J.M., and Card D. On the covariance structure of earnings and hours changes. Econometrica 57 (1989) 411-455
3. Amemiya T. A note on a random coefficients model. International Economic Review 19 3 (1978) 793-796
4. Arrow K. Essays in the Theory of Risk Bearing (1971), Markham Publishing, Chicago
5. Baltagi B. Econometric Analysis of Panel Data. 3rd ed. (2005), John Wiley & Sons, Chichester, UK
6. Berkhout P., Hartog J., and Webbink D. Compensation for earnings risk under heterogeneity. Paper Presented at the EEA Meetings, Amsterdam (2005)
7. Blanchard O.J., and Fisher S. Lectures on Macroeconomics (1989), MIT Press, Cambridge, Mass.
8. Camerer C. Individual decision-making. In: Kagel J.H., and Roth A.E. (Eds). The Handbook of Experimental Economics (1995), Princeton University Press, Princeton
9. Carroll C.D., and Samwick A. The nature of precautionary wealth. Journal of Monetary Economics 40 (1997) 41-71
10. Chen S. Estimating Wage Volatilities for College versus High School Careers. State University of New York at Albany: Discussion Paper 03-01 (2003)
11. Davis S., and Willen P. Occupation-level income shocks and asset returns: their covariance and implications for portfolio choice. NBER Working Paper vol. 7905 (2000)
12. Diaz Serrano L., Hartog J., and Nielsen H.S. Compensating Wage Differentials for Schooling Risk in Denmark, Discussion Paper Maynooth/Amsterdam/Aarhus (2004)
13. Dominitz J., and Manski C. Eliciting student expectations of the returns to schooling. Journal of Human Resources 31 1 (1996) 1-26
14. Feinberg R.M. Earnings-risk as a compensating differential. Southern Economic Journal 48 (1981) 156-163
15. Flyer F.A. The influence of higher moments of earnings distributions on career decisions. Journal of Labor Economics 15 4 (1997) 689-713
16. Friedman M., and Savage L.J. The utility analysis of choices involving risk. Journal of Political Economy 56 4 (1948) 279-304
17. Garrett T.A., and Sobel R.S. Gamblers favor skewness, not risk: further evidence from United States' Lottery games. Economics Letters 63 (1999) 85-90
18. Golec J., and Tamarkin M. Bettors love skewness, not risk, at the horse track. Journal of Political Economy 106 1 (1998) 205-225
19. Gollier C. The Economics of Risk and Time (2001), The MIT Press, Cambridge, Mass.
20. Hartog J. On human capital and individual capabilities. Review of Income and Wealth 47 4 (2001) 515-540
21. Hartog J. A risk augmented Mincer earnings equation?. Taking Stock, Working Paper (2006), University of Amsterdam
22. Hartog J., Plug E., Diaz Serrano L., and Vieira J. Risk compensation in wages, a replication. Empirical Economics 28 (2003) 639-647
23. Jacobs B., Hartog J., and Vijverberg W. Self-Selection Bias in Estimated Wage Premia for Earnings Risk, Discussion Paper Amsterdam/Dallas (2005)
24. King A.G. Occupational choice, risk aversion and wealth. Industrial and Labor Relations (1974) 586-596
25. Kloek T. OLS estimation in a model where a micro variable is explained by aggregate variables and contemporaneous disturbances are equicorrelated. Econometrica 49 1 (1981) 205-207
26. McGoldrick K. Do women receive compensating wages for earnings risk?. Southern Economic Journal 62 (1995) 210-222
27. McGoldrick K., and Robst J. The effect of worker mobility on compensating wages for earnings risk. Applied Economics 28 (1996) 221-232
28. Moore M.J. Unions, employment risks, and market provision of employment risk differentials. Journal of Risk and Uncertainty 10 1 (1995) 57-70
29. Moulton B.R. Random group effects and the precision of regression estimates. Journal of Econometrics 32 3 (1986) 385-397
30. Murphy K.M., and Topel R. Unemployment, risk and earnings: testing for equalizing differences in the labor market. In: Lang K., and Leonard J. (Eds). Unemployment and the Structure of Labor Markets (1987), Basil Blackwell, New York 103-140
31. Samuelson P.A. The fundamental approximation theorem of portfolio analysis in terms of means, variances and higher moments. Review of Economic Studies 37 4 (1970) 537-542
32. Shaw K.L. An empirical analysis of risk aversion and income growth. Journal of Labor Economics 14 4 (1996) 626-653
33. Smith A. The Wealth of Nations (1776/1976), Penguin, Harmondsworth
34. Tsiang S.C. The rationale for mean-standard deviation analysis, skewness preference and the demand for money. American Economic Review 62 3 (1972) 354-371
35. Vijverberg, W., in press. Modelling Group Effects in Complex Surveys, Discussion Paper, University of Texas at Dallas.
36. Webbink D., and Hartog J. Can students predict starting salaries? Yes!. Economics of Education Review 23 2 (2004) 103-113