Risk aversion and rising wage inequality
AbstractWe propose a model in which, as incomes grow, workers become less risk-averse and move from ﬁxed-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 InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/7307.
Date of creation: Sep 2002
Date of revision:
Publication status: Published in Economics Letters, 2002, Vol. 77, no. 1
Inequality; Risk aversion; Wage-setting institutions;
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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