Product market volatility and the adjustment of earnings to risk

Elisabetta Magnani*

*Corresponding author for this work

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

This investigation of compensating wage differentials uses an instrument for the risk of unemployment, namely, the industry-specific shipment volatility, to address some empirical anomalies found in the literature. I find that risk premiums for the risk of unemployment range from 8.5 to 19 percent when the covariance between shipment volatility and total manufacturing employment is taken into account. Covariance risk requires positive premiums that range from 1.4 to 14 percent depending on the specification.

Original languageEnglish
Pages (from-to)304-328
Number of pages25
JournalIndustrial Relations
Volume41
Issue number2
DOIs
Publication statusPublished - 2002
Externally publishedYes

Fingerprint Dive into the research topics of 'Product market volatility and the adjustment of earnings to risk'. Together they form a unique fingerprint.

  • Cite this