Risk Aversion and Job Mobility

T.M. van Huizen and Rob Alessie

No 16-09, Working Papers from Utrecht School of Economics

Abstract: Job mobility is inherently risky as workers have limited ex ante information about the quality of outside jobs. Using a large longitudinal Dutch dataset, which includes data on risk preferences elicited through (incentivized) experiments, we examine the relation between risk aversion and job mobility. The results for men show that risk averse workers are less likely to move to other jobs. For women, the evidence that risk aversion affects job mobility is weak. Our empirical findings indicate that the negative relation between risk aversion and job mobility is driven by the job acceptance rather than the search effort decision.

Keywords: Job mobility; risk aversion; job search; risk preferences (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-cbe, nep-hrm and nep-upt
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Journal Article: Risk aversion and job mobility (2019)
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