Risk Preference and Employment Contract Type
We explore the possibility that a systematic relationship exists between employment within a particular type of contract and risk preference. We exploit a set of proxies for risk preference, whereby some of the proxies capture risk loving behaviour (expenditure on gambling, smoking and alcohol) wher...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Language: | English |
| Published: |
Wiley-Blackwell Publishing
2006
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| Subjects: | |
| Online Access: | http://hdl.handle.net/20.500.11937/81802 |
| _version_ | 1848764422242172928 |
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| author | Brown, S. Farrell, L. Harris, Mark Sessions, J.G. |
| author_facet | Brown, S. Farrell, L. Harris, Mark Sessions, J.G. |
| author_sort | Brown, S. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We explore the possibility that a systematic relationship exists between employment within a particular type of contract and risk preference. We exploit a set of proxies for risk preference, whereby some of the proxies capture risk loving behaviour (expenditure on gambling, smoking and alcohol) whereas others capture risk averse behaviour (expenditure on life and contents insurance, and unearned income). The empirical analysis, based on pooled cross-section data from the UK Family Expenditure Survey, 1997-2000, provides evidence of a systematic relationship between employment contract type and risk preference, with, for example, self-employed workers being more or less likely to engage in the consumption of 'risky' or financial security products respectively. The results are based on the ordered generalized extreme value model, a relatively infrequently used discrete choice model, which allows for ordering and correlation in the alternatives observed. |
| first_indexed | 2025-11-14T11:19:06Z |
| format | Journal Article |
| id | curtin-20.500.11937-81802 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T11:19:06Z |
| publishDate | 2006 |
| publisher | Wiley-Blackwell Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-818022021-08-24T02:21:08Z Risk Preference and Employment Contract Type Brown, S. Farrell, L. Harris, Mark Sessions, J.G. Ordered generalized extreme value model, Performance-relatedp ay, Risk preference, Self-employment We explore the possibility that a systematic relationship exists between employment within a particular type of contract and risk preference. We exploit a set of proxies for risk preference, whereby some of the proxies capture risk loving behaviour (expenditure on gambling, smoking and alcohol) whereas others capture risk averse behaviour (expenditure on life and contents insurance, and unearned income). The empirical analysis, based on pooled cross-section data from the UK Family Expenditure Survey, 1997-2000, provides evidence of a systematic relationship between employment contract type and risk preference, with, for example, self-employed workers being more or less likely to engage in the consumption of 'risky' or financial security products respectively. The results are based on the ordered generalized extreme value model, a relatively infrequently used discrete choice model, which allows for ordering and correlation in the alternatives observed. 2006 Journal Article http://hdl.handle.net/20.500.11937/81802 10.1111/j.1467-985X.2006.00424.x English Wiley-Blackwell Publishing restricted |
| spellingShingle | Ordered generalized extreme value model, Performance-relatedp ay, Risk preference, Self-employment Brown, S. Farrell, L. Harris, Mark Sessions, J.G. Risk Preference and Employment Contract Type |
| title | Risk Preference and Employment Contract Type |
| title_full | Risk Preference and Employment Contract Type |
| title_fullStr | Risk Preference and Employment Contract Type |
| title_full_unstemmed | Risk Preference and Employment Contract Type |
| title_short | Risk Preference and Employment Contract Type |
| title_sort | risk preference and employment contract type |
| topic | Ordered generalized extreme value model, Performance-relatedp ay, Risk preference, Self-employment |
| url | http://hdl.handle.net/20.500.11937/81802 |