Are public sector workers more risk averse than private sector workers?
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Albert N. Link, Professor (Creator)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: Available evidence suggests that stability of employment is greater in the
public sector than in the private sector. The value that individuals place on
tbis stability depends on tbe individual's degree of risk aversion. Economic
reasoning suggests tbat, otber tbings equal, tbose individuals witb a high
degree of aversion to risk will be more likely tban otbers to seek employment
in the public sector. This paper tests tbat hypothesis tbrougb tbe use of probit
analysis and a measure of risk aversion developed in ibe University of
Micbigan's Panel Study of Income Dynamics. The results tend to confirm tbe
bypotbesis, implying tbat a policy of intersectoral equality of pay for comparable
jobs would result inanexcesssupplyof workers to tbe public sector.
Are public sector workers more risk averse than private sector workers?
PDF (Portable Document Format)
342 KB
Created on 7/5/2013
Views: 6106
Additional Information
- Publication
- Language: English
- Date: 1981
- Keywords
- risk aversion, labor relations, employment stability, private sector, public sector, economics, economic theory