@techreport{Diaz-Serrano2003Compensating,
abstract = {In this paper we test for risk compensation in wages using Danish panel data. With the
conviction that the type of education is as important as the education length, we use a very
detailed description of the type of education reached by the Danish population to calculate
different measures of earnings risk by education. Our long panel data set also allows us to
decompose shocks in earnings in a permanent and a transitory component. We test the role
of the risks associated to both components in wage compensation. We also experiment with
new measures of earnings risk based on transitory intertemporal fluctuations in earnings.
Thus, we get closer to risk measures catching the intrinsic long-run feature of schooling-risks
and the required compensation. In concordance to what theory predicts, we find that the
labor market compensates for such foreseeable risks. Hence, we state a return-risk trade-off
for the human capital investments in Denmark.},
author = {Luis Diaz-Serrano and Joop Hartog and Helena Skyt Nielsen},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {J3; D8; 330; risk-premium; skewness affection; schooling risk; earnings shocks; Lohnstruktur; Einkommen; Risiko; Bildung; Sch\"{a}tzung; D\"{a}nemark},
language = {eng},
number = {963},
title = {Compensating wage differentials for schooling risk in Denmark},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/20199},
year = {2003}
}
