Risk aversion and rising wage inequality
AbstractWe propose a model in which, as incomes grow, workers become less risk-averse and move from ï¬xed-wage contracts to variable pay. This can explain the recent increase in wage dispersion between groups, within groups, and over the lifecycle.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 77 (2002)
Issue (Month): 1 (September)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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