Self-selection bias in estimated wage premiums for earnings risk

Empirical Economics

Volumn 37, Issue 2, 2009, Pages 271-286

  Jacobs, Bas ^a   Hartog, Joop ^b   Vijverberg, Wim ^c  

^a ERASMUS UNIVERSITY ROTTERDAM   (Netherlands)

^b UNIVERSITY OF AMSTERDAM   (Netherlands)

^c UNIVERSITY OF TEXAS AT DALLAS   (United States)

Author keywords

Earnings risk; Selectivity bias; Wages

Indexed keywords

EMPIRICAL ANALYSIS; ESTIMATION METHOD; INCOME; NUMERICAL MODEL; OCCUPATION; REGRESSION ANALYSIS; WAGE DETERMINATION;

EID: 70349751841     PISSN: 03777332     EISSN: None     Source Type: Journal    
DOI: 10.1007/s00181-008-0231-0     Document Type: Article

References (26)

1. Bajdechi SM (2005) The risk of investment in human capital. Ph.D. thesis, Universiteit van Amsterdam. Tinbergen Institute Research Series 365
2. Berkhout P, Hartog J, Webbink D (2005) Compensation for earnings risk under worker heterogeneity. Paper presented at the EEA Meetings, Amsterdam
3. Chen SH (2008) Estimating the variance of wages in the presence of selection and unobserved heterogeneity. Rev Econ Stat (forthcoming)
4. Chen S, Khan S (2007) Estimating the causal effect of education on wage inequality using IV methods and sample selection models. Working Paper, University of Rochester and SUNY Albany
5. Christiansen C, Nielsen HS (2002) The educational asset market: A finance perspective on human capital investments. Aarhus School of Business Working Paper 02-10
6. Cunha F, Heckman J, Navarro S (2005) Separating uncertainty from heterogeneity in life cycle earnings. Oxford Econ Papers 57(2):191-261
7. Diaz Serrano L, Hartog J (2006) Is there a risk-return trade-off across educations?. Evidence from Spain. Investigaciones Economicas XXX(2):353-380
8. Diaz Serrano L, Hartog J, Nielsen H (2003) Compensating wage differentials for schooling risk in Denmark. Bonn: IZA Discussion Paper 963; revision 2007
9. Dohmen T, Falk A, Huffman D, Sunde U (2006) Individual risk attitudes: new evidence from a large representative experimentally validated survey. IZA Discussion Paper 1730
10. Dominitz J, Manski C (1996) Eliciting student expectations of the return to schooling. J Hum Resour 31(1):1-26
11. Feinberg RM (1981) Earnings-risk as a compensating differential. Southern Econ J 48:156-163
12. Gollier C (2001) The economics of risk and time. MIT Press, Cambridge, MA
13. Hartog J (2002) On human capital and individual capabilities. Rev Income Wealth 47(4):515-540
14. Hartog J, Ferrer-i-Carbonell A, Jonker N (2002) Linking measured risk aversion to individual characteristics. Kyklos 55(1):3-26
15. Hartog J, Plug E, Diaz Serrano L, Vieira J (2003) Risk compensation in wages, a replication. Empir Econ 28: 639-647
16. Hartog J, Vijverberg W (2007) On compensation for risk aversion and skewness affection in wages. Labour Econ 14(6):938-956
17. Hartog J, Webbink D (2004) Can students predict their starting salaries? Yes!. Econ Edu Rev 23(2):103-113
18. King AG (1974) Occupational choice, risk aversion and wealth. Ind Labor Relat Rev, pp 586-596
19. Levhari D, Weiss Y (1974) The effect of risk on the investment in human capital. Am Econ Rev 64(6):950-963
20. McGoldrick K (1995) Do women receive compensating wages for earnings risk. Southern Econ J 62: 210-222
21. McGoldrick K, Robst J (1996) The effect of worker mobility on compensating wages for earnings risk. Appl Econ 28: 221-232
22. Smith A (1776/1976) The wealth of nations. Penguin, Harmondsworth
23. Varian HR (1978) Microeconomic analysis. W.W. Norton and Company, London
24. Willis R, Rosen S (1979) Education and self-selection. J Polit Econ 87(5):S7-S36
25. Wolter S (2000) Wage expectations: A comparison of Swiss and US students. Kyklos 53(1):51-69
26. Weiss Y (1972) The risk element in occupational and educational choices. J Polit Econ 80(6):1203-1213