Abstract.
We use data from Germany, The Netherlands, Portugal and Spain to test for the effect of earnings variation on individual earnings. We replicate estimates for the USA and find that the variance of earnings in an occupation affects individual wages positively while the skewness of earnings has a negative effect. Both results are in conformity with wage compensation for risk averse workers.
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First version received: March 2001/Final version received: July 2002
We are grateful to two anonymous referees for valuable comments.
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Hartog, J., Plug, E., Serrano, L. et al. Risk compensation in wages – a replication. Empirical Economics 28, 639–647 (2003). https://doi.org/10.1007/s001810200150
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DOI: https://doi.org/10.1007/s001810200150