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Wages are uncertain and education, while increasing the expected wage, may increase or decrease wage variance.
Remittances are risk-reducing if the relative host-country wage variance θ h is sufficiently large: ∂Var ( c 2 ) ∂r < 0 ⇔ θ h > θ ~ h, (22).
In this context, the R-squared presented in Table 4 indicates that task heterogeneity accounts for approximately 9% of the cross-occupation wage variance, which again indicates the usefulness of a task approach in explaining wage differences.
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When the residual variance of the log wage equation is small relative to the overall variance in wages, variance in wages, Kramarz (2008) shows that E exp θ i + ϵ i | j i ∈ Industry k ≈ 1 + θ ̄ k.
In the presence of wage taxation, the variance of the agent's net compensation is equal to ((1-tau _w)^2v^2sigma ^2v^2sigma
Heckman and others argue that "cognitive ability is correlated with wages, but explains little of the variance in wages across individuals and time".
Coverage accounts for 50percentt of the variance in wage inequality across the 32 OECD member states (Visser et al. 2015).
The reduction in the risk premium is because wage taxation reduces the variance of the agent's compensation.
For a review of evidence on firm wage premia, and their variance even within industry and locality, see Abowd and Kramarz (1999).
Second, remittances are likely to decrease V a r(c2) if, at the margin where the migrant is indifferent between staying and returning (i.e. for D w =D R ), the variance of wages in the origin country is lower than the variance of wages in the host country.
I estimate using Tobit regressions the mean and variance of wages in each period.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com