Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35397
Authors: 
Schweri, Juerg
Hartog, Joop
Wolter, Stefan C.
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4069
Abstract: 
We use a unique data set about the wage distribution that Swiss students expect for themselves ex ante, deriving parametric and non-parametric measures to capture expected wage risk. These wage risk measures are unfettered by heterogeneity which handicapped the use of actual market wage dispersion as risk measure in earlier studies. Students in our sample anticipate that the market provides compensation for risk, as has been established with Risk Augmented Mincer earnings equations estimated on market data: higher wage risk for educational groups is associated with higher mean wages. With observations on risk as expected by students we find compensation at similar elasticities as observed in market data. The results are robust to different specifications and estimation models.
Subjects: 
Wage
expectations
wage risk
risk compensation
skewness
JEL: 
D8
I2
J2
J3
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
395.28 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.