Risk and the allocation of talent in the Roy model

C-Tier
Journal: Economics Letters
Year: 2024
Volume: 236
Issue: C

Authors (3)

Cubas, German (not in RePEc) Silos, Pedro (Temple University) Soini, Vesa (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

With risk-averse workers and uninsurable earnings shocks, competitive markets allocate too few workers to risky jobs. Using an equilibrium Roy model with incomplete markets, we show that in competitive equilibrium, risky occupations are inefficiently small and hence talent is misallocated.

Technical Details

RePEc Handle
repec:eee:ecolet:v:236:y:2024:i:c:s016517652400106x
Journal Field
General
Author Count
3
Added to Database
2026-01-25