Media and Occupational Choice

49 Pages Posted: 3 Oct 2017

See all articles by Alexander Konon

Alexander Konon

German Institute for Economic Research (DIW Berlin)

Alexander Kritikos

Europa-Universitaet Viadrina - Fakultat fur Wirtschaftswissenschaften; German Institute for Economic Research (DIW Berlin); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: september 2017

Abstract

We address the question of whether media influences occupational choices. To theoretically examine media effects, we construct a dynamic Bayesian occupational choice model with sequential decisions under ambiguity due to imperfect information. We show that sufficiently intensive positive media articles and reports about entrepreneurship increase the probability of self-employment and decrease the probability of wage work. To test our model, we use an instrumental variable approach to identify causal media effects using US micro data and a country-level macro panel with two different media variables. We find that an increase in positive media articles and reports about entrepreneurs generates effects on choice probabilities that are consistent with our model.

Keywords: Media, occupational choice, Bayesian learning, ambiguity aversion

JEL Classification: D81, D83, J62, L26

Suggested Citation

Konon, Alexander and Kritikos, Alexander S., Media and Occupational Choice (september 2017). DIW Berlin Discussion Paper No. 1683, Available at SSRN: https://ssrn.com/abstract=3046494 or http://dx.doi.org/10.2139/ssrn.3046494

Alexander Konon

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Alexander S. Kritikos (Contact Author)

Europa-Universitaet Viadrina - Fakultat fur Wirtschaftswissenschaften ( email )

15230 Frankfurt (Oder)
Germany

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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