Do Wages Really Compensate for Risk Aversion and Skewness Affection ?

@inproceedings{Hartog2002DoWR,
  title={Do Wages Really Compensate for Risk Aversion and Skewness Affection ?},
  author={J. E. den Hartog and Wim P. M. Vijverberg},
  year={2002}
}
Do Wages Really Compensate for Risk Aversion and Skewness Affection? Utility theory suggests that foreseeable risk should increase the compensation for work. This paper expands on this notion: on basis of utility theory, people should care not only about risk but also about the skewness in the distribution of the compensation paid. In particular, because… CONTINUE READING