Is There a Risk-Return Trade-Off across Occupations? Evidence from Spain

Luis Diaz-Serrano () and Joop Hartog

No 1355, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use data from Spain to test for an effect of earnings risk and skewness on individual wages. We carry out separate estimation for men, women, public and private sector employees. In accordance with previous evidence for the US we show the existence of a riskreturn trade-off across occupations in the Spanish labour market. These results are in conformity with preferences of risk-averse individuals with decreasing absolute risk aversion.

Keywords: occupational choices; skewness affection; risk-aversion; compensating wage differentials (search for similar items in EconPapers)
JEL-codes: D8 J3 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2004-10
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (1)

Published - published as 'Is there a risk-return trade-off in educational choices? Evidence from Spain' in: Investigaciones Economicas, 2006, 30 (2), 353-380

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