1. OCCUPATIONAL CHOICE, RISK AVERSION, AND WEALTH.
- Author
-
King, Allan G.
- Subjects
RISK aversion ,UTILITY theory ,VOCATIONAL guidance ,INDUSTRIAL safety ,RISK assessment ,RISK management in business ,INCOME inequality ,WAGES ,WEALTH - Abstract
This article discusses a study which assumed that the greater the dispersion of income within an occupation, the greater the income risks facing anyone selecting that occupation. The study concluded that riskier occupations offer higher mean incomes, and individuals from wealthier families choose riskier occupations. These suggestions imply that persons from wealthier families receive, on average, higher labor incomes. It is suggested also that income inequality may be transferred between generations not merely due to capital market imperfections leading to variations in the quantity or quality of schooling, but also due to the occupational preferences of a person may be stipulated by the income of his or her family.
- Published
- 1974
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