Multidimensional heterogeneity and the economic importance of risk and matching: evidence from contractual data and field experiments.

We measure the cost of risk and the benefits of matching heterogeneous workers to risk levels within a firm that pays its workers piece rates. The workers of this firm are heterogeneous in two dimensions: risk preferences and ability. Our results suggest that workers' willingness to pay to avoid ris...

Descripción completa

Detalles Bibliográficos
Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 44; no. 2; pp. 361 - 390
Autores principales: Bellemare, Charles, Shearer, Bruce
Formato: Artículo
Publicado: Wiley-Blackwell Summer2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
fields @attributes:
  recordID: 1
pdfLink:
plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=88235797&site=ehost-live
header:
  @attributes:
    shortDbName: ssf
    uiTerm: 88235797
    longDbName: Social Sciences Full Text (H.W. Wilson)
    uiTag: AN
  controlInfo:
    bkinfo:
    jinfo:
      jid:
        07416261
        56RJ
      jtl: RAND Journal of Economics (Wiley-Blackwell)
      issn: 07416261
      maglogo: Y
    pubinfo:
      dt: Summer2013
      vid: 44
      iid: 2
      pid: 480
      pub: Wiley-Blackwell
    artinfo:
      ui:
        88235797
        10.1111/1756-2171.12023
      ppf: 361
      ppct: 29
      formats:
        fmt:
          – @attributes:
              type: T
          – @attributes:
              type: P
              size: 588KB
      tig:
        atl: Multidimensional heterogeneity and the economic importance of risk and matching: evidence from contractual data and field experiments.
      aug:
        au:
          Bellemare, Charles
          Shearer, Bruce
        affil:
          Université Laval, CIRPÉE, and IZA
          Université Laval, CIRPÉE, IZA, and CIRANO
      su:
        Heterogeneity
        Employees
        Field research
        Multidimensional databases
        Willingness to pay
      sug:
        subj:
          Heterogeneity
          Employees
          Field research
          Multidimensional databases
          Willingness to pay
      ab: We measure the cost of risk and the benefits of matching heterogeneous workers to risk levels within a firm that pays its workers piece rates. The workers of this firm are heterogeneous in two dimensions: risk preferences and ability. Our results suggest that workers' willingness to pay to avoid risk is heterogeneous. It can attain 40% of their expected net earnings but averages to only 1%. Moreover, the benefits to the firm of matching are relatively small: profits are predicted to increase by only 2.3%, 4% if we restrict attention to cases where matching is possible. Although labor-market sorting contributes to this result (the workers in this firm are relatively risk tolerant), it is not the primary cause. More important is the relative homogeneity of risk conditions in this firm that give rise to limited opportunities for matching.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
    refInfo:
    copyright:
      @attributes:
        flag: N
    holdings:
      @attributes:
        islocal: N