Author, as appears in the article.: Díaz-Serrano L; Hartog J

Department: Economia

URV's Author/s: Díaz Serrano, Luis

Keywords: Skewness affection Risk-aversion Educational choices Compensating wages Compensating wage differentials skewness affection skewness educational choices compensating wage differentials aversion

Abstract: We use data from Spain to test for an effect of earnings variance and skewness on individual wages. We carry out separate estimations for men and women. In accordance with the scant previous evidence mainly focused on the US, we report the existence of a risk-return trade-off across educational choices in the Spanish labor market. These results are in conformity with preferences of risk-averse individuals with decreasing absolute risk aversion and hence, with preference for skewness. In contrast with the previous literature, our analysis is based just in education cells, instead of on occupation or occupation/education cells. This improvement allows us to capture in a more suitable way the essence of earnings risk.

Thematic Areas: Economics, econometrics and finance (miscellaneous) Economics Economia Ciencias sociales

licence for use: https://creativecommons.org/licenses/by/3.0/es/

ISSN: 02101521

Author's mail: luis.diaz@urv.cat

Author identifier: 0000-0001-9479-5091

Record's date: 2023-05-21

Papper version: info:eu-repo/semantics/publishedVersion

Link to the original source: https://www.fundacionsepi.es/investigacion/revistas/Art_VolXXX.asp

Licence document URL: http://repositori.urv.cat/ca/proteccio-de-dades/

Papper original source: Investigaciones Economicas. 30 (2): 353-380

APA: Díaz-Serrano L; Hartog J (2006). Is there a risk-return trade-off in educational choices? Evidence from Spain. Investigaciones Economicas, 30(2), 353-380

Entity: Universitat Rovira i Virgili

Journal publication year: 2006

Publication Type: Journal Publications