Firms hiring fresh graduates face uncertainty on the future productivity of workers. Theory suggests that starting … wages reflect this, with lower pay for greater uncertainty. We use the dispersion of exam grades within a field of education … as an indicator of the unobserved heterogeneity that employers face. We find solid evidence that starting wages are lower …

the insurance sector. The downside risk of insurers is explicitly modelled by common and idiosyncratic risk factors. Since … results point to a relatively low insurance sector wide risk. Dependence among insurers is higher than among reinsurers. …

We investigate the major choice of college graduates where we make choice dependent on expected initial wages and … expected real wage growth and expected initial wages across majors. Furthermore, the differences in these expectations appear …

-ante unable to fully observe a worker's ability and results in lower wages. Using a combination of propensity score and …