TY - JOUR
T1 - The Upside Potential of Hiring Risky Workers
T2 - Evidence from the Baseball Industry
AU - Bollinger, Christopher R.
AU - Hotchkiss, Julie L.
PY - 2003/10
Y1 - 2003/10
N2 - Making use of performance data for baseball players, this article provides empirical evidence in support of Lazear's (1998) theoretical predictions that (1) risky workers will earn a premium for their upside potential, (2) this risk premium will be higher the longer a worker's work life, and (3) firms must enjoy some comparative advantage in the labor market to be willing to pay a premium to risky workers. The validity of Lazear's predictions carries implications for wage differentials between young and old workers and between men and women.
AB - Making use of performance data for baseball players, this article provides empirical evidence in support of Lazear's (1998) theoretical predictions that (1) risky workers will earn a premium for their upside potential, (2) this risk premium will be higher the longer a worker's work life, and (3) firms must enjoy some comparative advantage in the labor market to be willing to pay a premium to risky workers. The validity of Lazear's predictions carries implications for wage differentials between young and old workers and between men and women.
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U2 - 10.1086/377027
DO - 10.1086/377027
M3 - Review article
AN - SCOPUS:0346327148
SN - 0734-306X
VL - 21
SP - 923
EP - 944
JO - Journal of Labor Economics
JF - Journal of Labor Economics
IS - 4
ER -