Dispersion estimation; Earnings risk; Censoring; Quantile regression; Occupational choice; Sorting; Risk preferences; SOEP; IABS

Daniel Pollmann, Thomas Dohmen and Franz Palm
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Daniel Pollmann: Department of Economics, Harvard University
Franz Palm: Maastricht University

No 28, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: We present a semiparametric method to estimate group-level dispersion, which is particularly effective in the presence of censored data. We apply this procedure to obtain measures of occupation-specific wage dispersion using top-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated with the wage dispersion of an individual's occupation.

Keywords: Dispersion estimation; Earnings risk; Censoring; Quantile regression; Occupational choice; Sorting; Risk preferences; SOEP; IABS (search for similar items in EconPapers)
JEL-codes: C14 C21 C24 D01 D81 J24 J31 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2020-09
New Economics Papers: this item is included in nep-eur, nep-lma, nep-rmg and nep-upt
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https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_028_2020.pdf First version, 2020 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ajk:ajkdps:028

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