We present a semiparametric method to estimate group-level dispersion, which is particularly effective in the presence of censored data. We apply this procedure to obtain measures of occupation-specific wage dispersion using top-coded administrative wage data from the German IAB Employment Sample. We then relate these robust measures of earnings risk to the risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated with the wage dispersion of an individual's occupation.
- c14 - Semiparametric and Nonparametric Methods: General
- c21 - "Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions"
- c24 - "Single Equation Models; Single Variables: Truncated and Censored Models; Switching Regression Models"
- j24 - "Human Capital; Skills; Occupational Choice; Labor Productivity"
- j31 - "Wage Level and Structure; Wage Differentials"
- d01 - Microeconomic Behavior: Underlying Principles
- d81 - Criteria for Decision-Making under Risk and Uncertainty
- Dispersion estimation
- Earnings risk
- Quantile regression
- Occupational choice
- Risk preferences
- QUANTILE REGRESSION
- SAMPLE SELECTION
- 2-STEP ESTIMATION
- TOBIT ESTIMATOR