Robust Estimation of Wage Dispersion with Censored Data: An Application to Occupational Earnings Risk and Risk Attitudes

Daniel Pollmann (), Thomas Dohmen and Franz Palm
Additional contact information
Daniel Pollmann: ROA, Maastricht University

No 6447, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: occupational choice; quantile regression; censoring; earnings risk; dispersion estimation; 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: 25 pages
Date: 2012-03
New Economics Papers: this item is included in nep-ecm, nep-lab, nep-lma, nep-ltv and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published - published in: De Economist, 2020, 168, 519 - 540

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Related works:
Journal Article: Robust Estimation of Wage Dispersion with Censored Data: An Application to Occupational Earnings Risk and Risk Attitudes (2020)
Working Paper: Robust Estimation of Wage Dispersion with Censored Data: An Application to Occupational Earnings Risk and Risk Attitudes (2013)
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