Risk Attitude and Wage Growth: Replication and Reconstruction

65 Pages Posted: 21 Apr 2009

See all articles by Santiago Budría

Santiago Budría

Universidade da Madeira

Luis Diaz-Serrano

Universitat Rovira i Virgili; IZA Institute of Labor Economics

Ada Ferrer-i-Carbonell

Institut d'Anàlisi Econòmica (IAE-CSIC), Barcelona

Joop Hartog

University of Amsterdam - Faculty of Economics and Business (FEB); Tinbergen Institute; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Abstract

We replicate Shaw (1996) who found that individual wage growth is higher for individuals with greater preference for risk taking. Expanding her dataset with more American observations and data for Germany, Spain and Italy, we find mixed support for the earlier results. We present and estimate a new model and find that in particular the wage level is sensitive to attitudes towards risk taking.

Keywords: wage growth, risk, post-school investment

JEL Classification: J24, J30

Suggested Citation

Budria, Santiago and Diaz-Serrano, Luis and Ferrer-i-Carbonell, Ada and Hartog, Joop, Risk Attitude and Wage Growth: Replication and Reconstruction. IZA Discussion Paper No. 4124. Available at SSRN: https://ssrn.com/abstract=1391796

Santiago Budria (Contact Author)

Universidade da Madeira ( email )

Campus Universitario da Penteada
9000-390 Funchal
Portugal

Luis Diaz-Serrano

Universitat Rovira i Virgili ( email )

Campus Sescelades, Carretera de Valls s/n
43006 Tarragona, Tarragona 43007
Spain

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Ada Ferrer-i-Carbonell

Institut d'Anàlisi Econòmica (IAE-CSIC), Barcelona ( email )

Barcelona, Bellaterra 08193
Spain

Joop Hartog

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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