Job Security and Risk‐Taking: Theory and Evidence From Professional Football. (10th December 2018)

• Record Type: Journal Article
• Authors: Slade, Peter; Tolhurst, Tor
• Is Part Of: Southern economic journal. Volume 85:Number 3(2019)
• Page Start: 899
• Page End: 918
• Publication Date: 2018-12-10
• Subjects: M12 -- M5 -- D8 -- J33 -- Z2; Southern States -- Economic conditions -- Periodicals; Economics -- Periodicals; Economic history; Economics; Southern States; Periodicals; 330.975005
• DOI: 10.1002/soej.12313
• Languages: English
• ISSNs: 0038-4038

Abstract

Abstract : This article investigates how job security impacts risky decision making. In a theoretical model, we show how risk‐taking can be affected by job security. Agents with moderate job security become more risk averse as their job security increases. Conversely, agents with very high (or low) job security act in a more risk neutral manner. We test these predictions using data on head coaching decisions from the National Football League, finding that job security has a negative and statistically significant effect on risk‐taking.