The Risk Element in Occupational and Educational Choices

Abstract

The study contains estimates of the coefficients of variation of income of scientists by age, level of education, and type of employment. The source of data is the 1966 National Register of Scientific and Technical Personnel. The analysis shows that the coefficient of variation tends to decrease as the level of education increases, and to be higher in private industry than in government or educational institutions. Incomes of scientists are found to be lognormally distributed. Estimates of the rate of return to education, which take into account risk differentials, are derived.