Identifying Idiosyncratic Career Taste and Skill with Income Risk

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dc.contributor.authorShore, Stephen H.
dc.contributor.authorBarth, Daniel
dc.contributor.authorJensen, Shane T.
dc.date2023-05-17T07:30:43.000
dc.date.accessioned2023-05-23T00:17:28Z
dc.date.available2023-05-23T00:17:28Z
dc.date.issued2012-10-01
dc.date.submitted2012-11-07T12:31:24-08:00
dc.description.abstractHow important to well-being is choosing a career with the right fit? This question is difficult to answer because we observe individuals only in their chosen careers, not in the other (presumably inferior) options they did not choose. To overcome this problem, we use expected utility to cardinalize a logit model of career choice in a setting where we observe the income risk of chosen careers and the risk-aversion of the people who choose them. The key parameter of interest - the importance of idiosyncratic taste and skill in career choice - is identified from the shift in the distribution of income risk with risk aversion. We estimate the model using individual-specific measures of income volatility to proxy for income risk and survey questions about hypothetical income gambles to proxy for risk preference, both from the PSID. We separate idiosyncratic career taste from skill using the pay gap between high and low-income risk people with high and low risk-aversion.
dc.description.commentsShore, Stephen H., Daniel Barth, and Shane T. Jensen. 2012. "Identifying Idiosyncratic Career Taste and Skill with Income Risk." PARC Working Paper Series, WPS 12-02.
dc.identifier.urihttps://repository.upenn.edu/handle/20.500.14332/42326
dc.legacy.articleid1035
dc.legacy.fulltexturlhttps://repository.upenn.edu/cgi/viewcontent.cgi?article=1035&context=parc_working_papers&unstamped=1
dc.source.issue36
dc.source.journalPARC Working Paper Series
dc.source.statuspublished
dc.subject.otherCareer choice
dc.subject.otherIdiosyncratic taste and skill
dc.subject.otherIncome risk
dc.subject.otherOccupational choice
dc.subject.otherDemography, Population, and Ecology
dc.subject.otherFamily, Life Course, and Society
dc.subject.otherSocial and Behavioral Sciences
dc.subject.otherSociology
dc.titleIdentifying Idiosyncratic Career Taste and Skill with Income Risk
dc.typeWorking Paper
digcom.contributor.authorisAuthorOfPublication|email:sshore@gsu.edu|institution:Georgia State University|Shore, Stephen H.
digcom.contributor.authorisAuthorOfPublication|email:dbarth@hamilton.edu|institution:Johns Hopkins University|Barth, Daniel
digcom.contributor.authorisAuthorOfPublication|email:stjensen@wharton.upenn.edu|institution:University of Pennsylvania|Jensen, Shane T.
digcom.identifierparc_working_papers/36
digcom.identifier.contextkey3453916
digcom.identifier.submissionpathparc_working_papers/36
digcom.typeworkingpaper
dspace.entity.typePublication
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relation.isAuthorOfPublication4080eb80-5748-4ed4-84b9-315f3e382436
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relation.isAuthorOfPublication.latestForDiscoveryaddf4329-309f-406c-bd42-9ffae9759c1a
upenn.schoolDepartmentCenterPARC Working Paper Series
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