IDEAS home Printed from https://ideas.repec.org/p/sef/csefwp/67.html
   My bibliography  Save this paper

Education, Employment and Wage Risk

Author

Listed:

Abstract

We measure the return to education by accounting for differences in wage and unemployment risk confronted by individuals with different levels of education. When markets are incomplete, risk-averse individuals value jobs to which less income risk is associated. In this case a measure of the return to education based only on the expected post-schooling wages can be misleading. We estimate the implicit return to schooling under four different scenarios: no uncertainty, unemployment risk, wage risk, and both wage and unemployment risk. The empirical analysis uses US and Italian microeconomic data. The main finding is that the return of schooling is downward biased if no account is made for risk.

Suggested Citation

  • Mario Padula & Luigi Pistaferri, 2001. "Education, Employment and Wage Risk," CSEF Working Papers 67, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:67
    as

    Download full text from publisher

    File URL: http://www.csef.it/WP/wp67.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:lan:wpaper:2660 is not listed on IDEAS
    2. Angel de la Fuente & Rafael Domenech & Juan Francisco Jimeno, 2003. "Human capital as a factor of growth and employment at the regional level. The case of Spain," UFAE and IAE Working Papers 610.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Angel de la Fuente & Juan Francisco Jimeno, 2004. "The private and fiscal returns to schooling and the effect of public policies on private incentives to invest in education: a general framework and some results for the EU," UFAE and IAE Working Papers 635.04, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    4. repec:lan:wpaper:2434 is not listed on IDEAS
    5. Migali, Giuseppe, 2012. "Funding higher education and wage uncertainty: Income contingent loan versus mortgage loan," Economics of Education Review, Elsevier, vol. 31(6), pages 871-889.
    6. Sequeira, Sandra & Spinnewijn, Johannes & Xu, Guo, 2016. "Rewarding schooling success and perceived returns to education: Evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 373-392.
    7. Angel de la Fuente, 2003. "Human Capital in a global and knowledge-based economy, part II: assessment at the EU country level," Working Papers 98, Barcelona School of Economics.
    8. Orazio Attanasio & Katja Kaufmann, 2009. "Educational Choices, Subjective Expectations, and Credit Constraints," NBER Working Papers 15087, National Bureau of Economic Research, Inc.
    9. Migali, Giuseppe, 2006. "Funding Higher Education and Wage Uncertainty: Income Contingent Loan Versus Mortgate Loan," The Warwick Economics Research Paper Series (TWERPS) 740, University of Warwick, Department of Economics.
    10. repec:lan:wpaper:2516 is not listed on IDEAS
    11. Alberto Dalmazzo & Guido Blasio, 2007. "Production and consumption externalities of human capital: an empirical study for Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(2), pages 359-382, April.
    12. repec:lan:wpaper:2436 is not listed on IDEAS
    13. Judith M. Delaney, 2019. "Risk-adjusted returns to education," Education Economics, Taylor & Francis Journals, vol. 27(5), pages 472-487, September.
    14. Maria G. Perozek, 2005. "Escaping the Samaritan's Dilemma: implications of a dynamic model of altruistic intergenerational transfers," Finance and Economics Discussion Series 2005-67, Board of Governors of the Federal Reserve System (U.S.).
    15. Katja Kaufmann, 2008. "Understanding the Income Gradient in College Attendance in Mexico: The Role of Heterogeneity in Expected Returns to College," Discussion Papers 07-040, Stanford Institute for Economic Policy Research.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:67. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Maria Carannante (email available below). General contact details of provider: https://edirc.repec.org/data/cssalit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.