Arbeitspapier
Do students expect compensation for wage risk?
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.
- Language
-
Englisch
- Bibliographic citation
-
Series: IZA Discussion Papers ; No. 4069
- Classification
-
Wirtschaft
- Subject
-
Wage
expectations
wage risk
risk compensation
skewness
Lohn
Risiko
Erwartungstheorie
Bildungsertrag
Studierende
Schweiz
- Event
-
Geistige Schöpfung
- (who)
-
Schweri, Juerg
Hartog, Joop
Wolter, Stefan C.
- Event
-
Veröffentlichung
- (who)
-
Institute for the Study of Labor (IZA)
- (where)
-
Bonn
- (when)
-
2009
- Handle
- URN
-
urn:nbn:de:101:1-2009033021
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schweri, Juerg
- Hartog, Joop
- Wolter, Stefan C.
- Institute for the Study of Labor (IZA)
Time of origin
- 2009
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