Occupational sorting of school graduates: The role of economic preferences

D. Fouarge, B. Kriechel, T.J. Dohmen

Research output: Working paperProfessional

9 Citations (Scopus)
376 Downloads (Pure)

Abstract

We relate risk attitudes and patience of young graduates from high-school, college and university, measured around the time that they start their labor market career in a large representative survey, to the riskiness and timing of earnings in the occupations they choose to work in. We find a systematic positive and significant relation between willingness to take risks and measures of occupational earnings risks and employment risk that we derive from a large administrative data set. Patient individuals are significantly more likely to choose for occupations with a steep earnings profile. Individuals whose economic preferences are not well aligned with the riskiness and timing of earnings in their initial occupation are more likely to change to an occupation that better matches their economic preferences.
Original languageEnglish
Place of PublicationMaastricht
PublisherMaastricht University, Graduate School of Business and Economics
Publication statusPublished - 1 Jan 2014

Publication series

SeriesGSBE Research Memoranda
Number031

Cite this

Fouarge, D., Kriechel, B., & Dohmen, T. J. (2014). Occupational sorting of school graduates: The role of economic preferences. Maastricht University, Graduate School of Business and Economics. GSBE Research Memoranda, No. 031