Unobserved heterogeneity and risk in wage variance: does more schooling reduce earnings risk?

Jacopo Mazza; Hans van Ophem; Joop Hartog

doi:10.1016/j.labeco.2013.09.007

Unobserved heterogeneity and risk in wage variance: does more schooling reduce earnings risk?

Jacopo Mazza^*, Hans van Ophem, Joop Hartog

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

12 Citations (Scopus)

Abstract

We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries.

Original language	English
Pages (from-to)	323-338
Number of pages	16
Journal	Labour Economics
Volume	24
DOIs	https://doi.org/10.1016/j.labeco.2013.09.007
Publication status	Published - Oct 2013
Externally published	Yes

Keywords

Education
Replication
Selectivity
Unobserved heterogeneity
Wage inequality
Wage uncertainty

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.labeco.2013.09.007

Cite this

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title = "Unobserved heterogeneity and risk in wage variance: does more schooling reduce earnings risk?",

abstract = "We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries.",

keywords = "Education, Replication, Selectivity, Unobserved heterogeneity, Wage inequality, Wage uncertainty",

author = "Jacopo Mazza and {van Ophem}, Hans and Joop Hartog",

year = "2013",

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language = "English",

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journal = "Labour Economics",

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T1 - Unobserved heterogeneity and risk in wage variance

T2 - does more schooling reduce earnings risk?

AU - Mazza, Jacopo

AU - van Ophem, Hans

AU - Hartog, Joop

PY - 2013/10

Y1 - 2013/10

N2 - We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries.

AB - We apply a recently proposed method to disentangle unobserved heterogeneity from risk in returns to education to data for the USA, the UK and Germany. We find that in residual wage variation, uncertainty by far dominates unobserved heterogeneity. The relation between uncertainty and level of education is not monotonic and differs among countries.

KW - Education

KW - Replication

KW - Selectivity

KW - Unobserved heterogeneity

KW - Wage inequality

KW - Wage uncertainty

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U2 - 10.1016/j.labeco.2013.09.007

DO - 10.1016/j.labeco.2013.09.007

M3 - Article

AN - SCOPUS:84886409505

SN - 0927-5371

VL - 24

SP - 323

EP - 338

JO - Labour Economics

JF - Labour Economics

ER -

Unobserved heterogeneity and risk in wage variance: does more schooling reduce earnings risk?

Abstract

Keywords

UN SDGs

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