Risk attitudes, job mobility and subsequent wage growth during the early career

Author
Argaw, Bethlehem A. · Maier, Michael F. · Skriabikova, Olga J.
Published 2017
  See all Details

Abstract

Job change is a decision under uncertainty: It is associated with costs whereas the decision is made without full knowledge about future benefits. In order to investigate the relationship between willingness to take risks and job mobility, we first extend a model for on-the-job search with nonwage job characteristics by including heterogeneity in risk attitudes. Second, we empirically test the model's implications showing that individuals who are more risk-averse choose to change their jobs less often than more risk-tolerant individuals. This difference in the job changing behaviour leads to only moderate differences wage growth during early career: Risk-averse individuals tend to have on average higher wage gains from each job change and have obtained higher overall wage growth at the end of the early career phase.

Reviews

Write Review

Saving... Saving... Cancel Save Cancel

Details

Title
Risk attitudes, job mobility and subsequent wage growth during the early career
Author
Argaw, Bethlehem A. · Maier, Michael F. · Skriabikova, Olga J.
Year
2017
Published
2017
Type
Research Paper
Language
eng
Keywords
Risk Attitudes · Job Mobility · Wage Growth · Early Career Development · Criteria For Decision-Making Under Risk And Uncertainty · Wage Level And Structure · Wage Differentials · Job, Occupational, And Intergenerational Mobility
This is Version 1 of this record. We added this version on August 6, 2017. This version is based on an original data import from RePEc.