Risk Aversion and Sorting into Public Sector Employment
This research note uses two German data sets – the large-scale German Socio-Economic Panel and unique data from own student questionnaires – to analyse the relationship between risk aversion and the choice for public sector employment. Main results are: (1) more risk averse individuals sort into public sector employment, (2) the impact of career specific and unemployment risk attitudes is larger than the impact of general risk attitudes, and (3) risk taking is rewarded with higher wages in the private but not in the public sector.
|Date of creation:||May 2008|
|Publication status:||published in: German Economic Review, 2011, 12 (1), 85 - 99|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
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.:
- Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, vol. 60(2), pages 229-235, August.
- Andrew Clark & Fabien Postel-Vinay, 2005.
"Job Security and Job Protection,"
CEP Discussion Papers
dp0678, Centre for Economic Performance, LSE.
- Clark, Andrew E. & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," IZA Discussion Papers 1489, Institute for the Study of Labor (IZA).
- Andrew Clark & Fabien Postel-Vinay, 2005. "Job security and job protection," LSE Research Online Documents on Economics 19904, London School of Economics and Political Science, LSE Library.
- Andrew E. Clark & Fabien Postel-Vinay, 2004. "Job security and job protection," DELTA Working Papers 2004-16, DELTA (Ecole normale supérieure).
- Andrew E. Clark & Fabien Postel-Vinay, 2009. "Job security and job protection," Post-Print halshs-00754384, HAL.
- Clark, Andrew E & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," CEPR Discussion Papers 4927, C.E.P.R. Discussion Papers.
- Shaw, Kathryn L, 1996. "An Empirical Analysis of Risk Aversion and Income Growth," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 626-653, October.
- Rebecca M. Blank, 1985. "An Analysis of Workers' Choice between Employment in the Public and Private Sectors," ILR Review, Cornell University, ILR School, vol. 38(2), pages 211-224, January.
- Pannenberg, Markus, 2007. "Risk Aversion and Reservation Wages," IZA Discussion Papers 2806, Institute for the Study of Labor (IZA).
- Dustmann, C. & van Soest, A., 1997.
"Public and Private Sector Wages of Male Workers in Germany,"
Economics Working Papers
eco97/13, European University Institute.
- Dustmann, Christian & van Soest, Arthur, 1998. "Public and private sector wages of male workers in Germany," European Economic Review, Elsevier, vol. 42(8), pages 1417-1441, September.
- Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
- Pissarides, Christopher A, 1974. "Risk, Job Search, and Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1255-1267, Nov.-Dec..
- James M. Poterba & Kim S. Rueben, 1994. "The Distribution of Public Sector Wage Premia: New Evidence Using Quantile Regression Methods," NBER Working Papers 4734, National Bureau of Economic Research, Inc.
- Luechinger, Simon & Stutzer, Alois & Winkelmann, Rainer, 2006.
"The Happiness Gains from Sorting and Matching in the Labor Market,"
IZA Discussion Papers
2019, Institute for the Study of Labor (IZA).
- Simon Luechinger & Alois Stutzer & Rainer Winkelmann, 2007. "The Happiness Gains from Sorting and Matching in the Labor Market," SOEPpapers on Multidisciplinary Panel Data Research 45, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Simon Luechinger & Alois Stutzer & Rainer Winkelmann, 2007. "The Happiness Gains From Sorting and Matching in the Labor Market," Working papers 2007/01, Faculty of Business and Economics - University of Basel.
- Simon Luechinger & Alois Stutzer & Rainer winkelmann, 2006. "The Happiness Gains From Sorting and Matching in the Labor Market," IEW - Working Papers 275, Institute for Empirical Research in Economics - University of Zurich.
- Joni Hersch & W. Kip Viscusi, 1990. "Cigarette Smoking, Seatbelt Use, and Differences in Wage-Risk Tradeoffs," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 202-227.
- Don Bellante & Albert N. Link, 1981. "Are Public Sector Workers More Risk Averse Than Private Sector Workers?," ILR Review, Cornell University, ILR School, vol. 34(3), pages 408-412, April.
- Pederson, P. J. & Schmidt-Sorensen, J. B. & Smith, N. & Westergard-Nielsen, N., 1990. "Wage differentials between the public and private sectors," Journal of Public Economics, Elsevier, vol. 41(1), pages 125-145, February.
- Feinberg, Robert M, 1977. "Risk Aversion, Risk, and the Duration of Unemployment," The Review of Economics and Statistics, MIT Press, vol. 59(3), pages 264-271, August.
- Levhari, David & Weiss, Yoram, 1974. "The Effect of Risk on the Investment in Human Capital," American Economic Review, American Economic Association, vol. 64(6), pages 950-963, December.
- Markus Pannenberg, 2007. "Risk Aversion and Reservation Wages," SOEPpapers on Multidisciplinary Panel Data Research 23, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Christian Dustmann & Arthur Van Soest, 1997.
"Wage structures in the private and public sectors in West Germany,"
Institute for Fiscal Studies, vol. 18(3), pages 225-247, August.
- Dustmann, C. & van Soest, A.H.O., 1997. "Wage structures in the private and public sectors in West Germany," Other publications TiSEM f1b3bfed-ce84-471a-a9d7-1, Tilburg University, School of Economics and Management.
- Blaise Melly, 2005. "Public-private sector wage differentials in Germany: Evidence from quantile regression," Empirical Economics, Springer, vol. 30(2), pages 505-520, 09.
- George J. Borjas, 2002. "The Wage Structure and the Sorting of Workers into the Public Sector," NBER Working Papers 9313, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3503. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.