Cross-sectional Earnings Risk and Occupational Sorting : The Role of Risk Attitudes

@inproceedings{Bonin2006CrosssectionalER,
  title={Cross-sectional Earnings Risk and Occupational Sorting : The Role of Risk Attitudes},
  author={Holger Bonin and Thomas Dohmen and Armin Falk and David Huffman and Uwe Sunde},
  year={2006}
}
Abstract This paper investigates whether risk preferences explain how individuals are sorted into occupations with different earnings variability. We exploit data from the German Socio-Economic Panel, which contains a subjective assessment of willingness to take risks whose behavioral relevance has been validated in previous work. As a measure of earnings risk, we use the cross-sectional variation in earnings that is left unexplained by human capital in Mincerian wage regressions. By relating… CONTINUE READING
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