Risk aversion and rising wage inequality
Caroli, Eve; Garcia-Peñalosa, Cecilia (2002), Risk aversion and rising wage inequality, Economics Letters, 77, 1, p. 21–26. http://dx.doi.org/10.1016/S0165-1765(02)00095-2
TypeArticle accepté pour publication ou publié
Journal nameEconomics Letters
MetadataShow full item record
Abstract (EN)We propose a model in which, as incomes grow, workers become less risk-averse and move from ﬁxed-wagecontracts to variable pay. This can explain the recent increase in wage dispersion between groups, within groups,and over the lifecycle.
Subjects / KeywordsWage-setting institutions; Inequality; Risk aversion
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