parametric and non-parametric measures to capture expected wage risk. These wage risk measures are unfettered by heterogeneity … which handicapped the use of actual market wage dispersion as risk measure in earlier studies. Students in our sample … anticipate that the market provides compensation for risk, as has been established with Risk Augmented Mincer earnings equations …

variance of exam grades is higher and that starting wages are lower if the skew is higher: employers shift quality risk to new …