Antecedents of Attitudes Towards Risky Career Choices
AbstractWe explore the attitude towards risky career choices of young people in highly competitive environments. We empirically test which factors influence young elite athletes' tendency towards choosing a high-risk career option over a lower risk one; looking at the attitudes, of close to 1000 soccer players in the German "Bundesliga" professional clubs' Youth Academies, towards making real-life decisions. Generally, they face the decision early on as to whether or not they should risk quitting school to solely focus on a professional soccer career. Our study confirms that elements of expected utility, assessment of the likelihood of achievement of the aspired career as well as the potential benefit derived from this decision, explain risk-taking in competitive environments. The longer an individual survives the continuous selection process in the competitive environment, the more he thinks that he will eventually succeed - despite the increasing opportunity costs of quitting a low-risk alternative career. Initial success in the selection processes is a key trigger for the tendency to choose a career in winner-take-all markets.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2012-20.
Date of creation: Dec 2012
Date of revision:
Career choices; Risk attitude; Risk perception; Professional athletes; Young athletes; Opportunity cost; integration;
Other versions of this item:
- Verena Jung & Sascha L. Schmidt & Benno Torgler, . "Antecedents of Attitudes Towards Risky Career Choices," School of Economics and Finance Discussion Papers and Working Papers Series 297, School of Economics and Finance, Queensland University of Technology.
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-15 (All new papers)
- NEP-CBE-2012-12-15 (Cognitive & Behavioural Economics)
- NEP-LMA-2012-12-15 (Labor Markets - Supply, Demand, & Wages)
- NEP-UPT-2012-12-15 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daniel Müller & Benno Torgler & Eric M. Uslaner, 2012. "A Comment on “Inherited Trust and Growth”," Economics Bulletin, AccessEcon, vol. 32(2), pages 1481-1488.
- Frey, Bruno S., 1988. "Ipsative and objective limits to human behavior," Journal of Behavioral Economics, Elsevier, vol. 17(4), pages 229-248.
- Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
- Cramer, J. S. & Hartog, J. & Jonker, N. & Van Praag, C. M., 2002. "Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 29-36, May.
- Caner, Asena & Okten, Cagla, 2010.
"Risk and career choice: Evidence from Turkey,"
Economics of Education Review,
Elsevier, vol. 29(6), pages 1060-1075, December.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Alex Krumer & Tal Shavit & Mosi Rosenboim, 2011. "Why do professional athletes have different time preferences than non-athletes?," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 6(6), pages 542-551, August.
- Alan B. Krueger, 2005. "The Economics of Real Superstars: The Market for Rock Concerts in the Material World," Journal of Labor Economics, University of Chicago Press, vol. 23(1), pages 1-30, January.
- Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna-Lea Werlen).
If references are entirely missing, you can add them using this form.