We analyze workers' risk preferences and training investments. Our conceptual framework differentiates between the … investment risk and insurance mechanisms underpinning training decisions. Investment risk leads risk-averse workers to train less … demonstrate that risk affinity is associated with more training, implying that, on average, investment risks dominate the …

We provide the first estimates of the impact of managers' risk preferences on their training allocation decisions. Our … conceptual framework links managers' risk preferences to firms' training decisions through the bonuses they expect to receive …. Risk-averse managers are expected to select workers with low turnover risk and invest in specific rather than general …