Sorting into risky jobs

Application rates by gender and riskiness

with Marcela Ibanez and Kerstin Grosch

Violent conflicts have negative effects on prosperity and development. Reconstruction efforts need that qualified labor force is willing to work in highly violent areas. We use a field experiment to investigate the effects of life risk on sorting in the labor market. We offer comparable jobs in low and high conflict areas in Colombia to a pool of job seekers. %We further investigate the willingness to take risk by varying the salary in the high risk area. We find that the applicant rate decreases in 12~percentage points due to life risk. Yet, the drop is similar for male and female job seekers, suggesting that if women are more risk averse than men, the difference is not large enough to have economic impacts. A salary increase helps to increase application rates to high risk jobs but does not close the gap.

Gerhard Riener
Assistant Professor of Experimental Economics

My research interests include experimental economics, economics of charitable giving and labor economics. I have worked interdisciplinary with linguists, political scientists and psychologists