| Publisher | University of Leicester | ||
|---|---|---|---|
| Format | 312.3KB PDF | Date added | 01 Dec 2002 |
| Topics | Financial Management, Human Capital Management | ||
| Downloads | 39 | ||
The aim of this paper is to explore how interpersonal variation in risk preference affects human capital investment and, hence, wage growth. To date, there has been a distinct lack of empirical research in this area despite the fact that the risk preference of individuals plays a key role in the theoretical models of human capital accumulation. The paper investigates the link between risk preference, human capital investment and wage growth using data from four waves of the British Household Panel Survey using a measure of the extent of risky financial assets held by individuals as a proxy for risk preference.
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