A Risk Augmented Mincer Earnings Equation? Taking Stock

Joop Hartog

No 4439, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We survey the literature on the Risk Augmented Mincer equation that seeks to estimate the compensation for uncertainty in the future wage to be earned after completing an education. There is wide empirical support for the predicted positive effect of wage variance and the negative effect of wage skew. We discuss robustness of the findings across specifications, potential bias from unobserved heterogeneity and selectivity and consider the core issue of students’ information on benefits from education.

Keywords: earnings function; human capital; risk (search for similar items in EconPapers)
JEL-codes: D8 J31 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2009-09
New Economics Papers: this item is included in nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - Research in Labor Economics, 2011, 33, 129-173

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