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Linking risk aversion and type of employment

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  • Di Mauro, Carmela
  • Musumeci, Rosy

Abstract

Employees whose incomes have a variable component should exhibit lower risk aversion than fixed-income earners. This hypothesis is tested on 258 individuals interviewed in Italy, aged between 25 and 40 in the course of face-to-face-interviews. We find that the probability of being a variable income earner decreases with risk-aversion. Further, we investigate the link between risk preferences and job insecurity and find that women in temporary jobs are more risk averse than women in permanent ones.

Suggested Citation

  • Di Mauro, Carmela & Musumeci, Rosy, 2011. "Linking risk aversion and type of employment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 490-495.
    • Handle: RePEc:eee:soceco:v:40:y:2011:i:5:p:490-495
    DOI: 10.1016/j.socec.2010.12.001
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    3. Díaz, Estrella & Martín-Consuegra, David & Esteban, Águeda, 2015. "Perceptions of service cannibalisation: The moderating effect of the type of travel agency," Tourism Management, Elsevier, vol. 48(C), pages 329-342.
    4. Monica Galizzi & Tommaso Tempesti, 2015. "Workers’ Risk Tolerance and Occupational Injuries," Risk Analysis, John Wiley & Sons, vol. 35(10), pages 1858-1875, October.
    5. Krčál, Ondřej & Staněk, Rostislav & Slanicay, Martin, 2019. "Made for the job or by the job? A lab-in-the-field experiment with firefighters," Research in Economics, Elsevier, vol. 73(4), pages 271-276.
    6. Saeid Homayoun & Vahid Molla Imeny & Mahdi Salehi & Mahdi Moradi & Simon Norton, 2022. "Which Is More Concerning for Accounting Professionals-Personal Risk or Professional Risk?," Sustainability, MDPI, vol. 14(22), pages 1-13, November.
    7. Alfonso Expósito & Amparo Sanchis-Llopis & Juan A. Sanchis-Llopis, 2021. "The effect of the manager gender on SMEs export and import decisions: Evidence for Spain," Working Papers 2115, Department of Applied Economics II, Universidad de Valencia.
    8. Ondřej Krčál & Rostislav Staněk & Martin Slanicay, 2019. "Made for the job or by the job? A lab-in-the-field experiment with firefighters," MUNI ECON Working Papers 2019-05, Masaryk University, revised Feb 2023.
    9. Martin Mabunda Baluku & Edward Bantu & Kathleen Otto, 2018. "Effect of Locus of Control on Entrepreneurial Attitudes and Self-Employment Intentions: The Moderating Role of Individualism," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 251-283, September.
    10. Weiyi Zhang & Hiromasa Takahashi & Junyi Shen, 2016. "Does Physical Exercise Affect Tradeoffs between Fixed Pay and Performance-related Pay for Individuals?," Discussion Paper Series DP2016-13, Research Institute for Economics & Business Administration, Kobe University.
    11. Alfonso Expósito & Amparo Sanchis-Llopis & Juan A. Sanchis-Llopis, 2022. "Manager gender, entrepreneurial orientation and SMEs export and import propensities: evidence for Spanish businesses," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 315-347, June.

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    More about this item

    Keywords

    Risk-aversion; Temporary employment; Job insecurity; Gender;
    All these keywords.

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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