Sorting, incentives and risk preferences: Evidence from a field experiment
AbstractWe conducted experiments within a firm to measure the risk preferences of workers who face substantial daily income risk. We find that these workers are significantly more risk-tolerant than individuals from the broader population. This is consistent with sorting: risk-tolerant workers are attracted to high-risk occupations.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 108 (2010)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Risk aversion Sorting Incentive contracts Field experiments;
Other versions of this item:
- Charles Bellemare & Bruce S. Shearer, 2006. "Sorting, Incentives and Risk Preferences: Evidence from a Field Experiment," Cahiers de recherche 0631, CIRPEE.
- Bellemare, Charles & Shearer, Bruce S., 2006. "Sorting, Incentives and Risk Preferences: Evidence from a Field Experiment," IZA Discussion Papers 2227, Institute for the Study of Labor (IZA).
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
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