Occupational choice model

In Economics, an occupational choice model is a model that seeks to answer why people enter into different occupations [1] .[2]

In the model, in each moment, the person decides whether to work as in the previous occupation, in some other occupation, or not to be employed. In some versions of the model, an individual chooses that occupation for which the present value of his expected income is a maximum.[3] However, in other versions, risk aversion may drive people to work in the same occupation as before.[4]

References
  1. Blau, Peter; Gustad, John; Jessor, Richard; Parnes, Herbert; Wilcock, Richard (1956). "Occupational Choice: A Conceptual Framework". ILR Review. 9 (4): 531–543. doi:10.1177/001979395600900401. S2CID 158449519. Retrieved 18 April 2021.
  2. McCall, Brian P. (1991). "A dynamic model of occupational choice". Journal of Economic Dynamics and Control. 15 (2): 387–408. doi:10.1016/0165-1889(91)90019-W. Retrieved 18 April 2021.
  3. Benewitz, Maurice; Zucker, Albert (1968). "Human Capital and Occupational Choice: A Theoretical Model". Southern Economic Journal. 34 (3): 406–409. doi:10.2307/1055503. JSTOR 1055503.
  4. Lang, Kevin (August 2018). "THE DETERMINANTS OF TEACHERS' OCCUPATIONAL CHOICE". NBER Working Paper Series. 24883. Retrieved 18 April 2021.
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