Risk compensation in wages - a replication
Faculty of Economics and Business (FEB)
Amsterdam School of Economics Research Institute (ASE-RI)
We use data from Germany, The Netherlands, Portugal and Spain to test for the effect of earnings variation on individual earnings.
We replicate estimates for the USA and find that the variance of earnings in an occupation affects individual wages positively
while the skewness of earnings has a negative effect. Both results are in conformity with wage compensation for risk averse
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