A risk augmented mincer earnings equation? Taking stock

Authors
Publication date 2009
Series IZA Discussion Papers, 4439
Number of pages 65
Publisher Bonn: IZA
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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.
Document type Report
Language English
Published at http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/publications/papers&topSelect=publications&subSelect=papers
Permalink to this page
Back