Working Paper
Wage Compensations Due to Risk Aversion and
Skewness Affection – German Evidence
Wolfgang Nagl
Ifo Institute, Munich, 2012
Ifo Working Paper No. 145
Ifo Institute, Munich, 2012
Ifo Working Paper No. 145
As a new approach we study individual wage compensations due to income risks measured by the variance and skewness of the wage distributions in different occupational groups. Using German administrative panel data and estimating a fixed effects model we confirm the expected positive effect of the variance and the negative effect of the skewness on individual wages.
Schlagwörter: Wage compensation, income risk
JEL Klassifikation: J300, J310