Risk Premium for Loss of Employment in Polish Regions

On the basis of the income-based valuation method of intellectual capital of the region in the previous papers, the author discovers a need for a valuation of the risk premium which should be included in the rate that discounts income from work. Undoubtedly, both the loss of employment and the amoun...

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Main Author: Jan Ostoj
Format: Article
Language:English
Published: University of Applied Sciences in Bielsko-Biała 2016-02-01
Series:Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej
Subjects:
Online Access:https://asej.eu/index.php/asej/article/view/256
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author Jan Ostoj
author_facet Jan Ostoj
author_sort Jan Ostoj
collection DOAJ
description On the basis of the income-based valuation method of intellectual capital of the region in the previous papers, the author discovers a need for a valuation of the risk premium which should be included in the rate that discounts income from work. Undoubtedly, both the loss of employment and the amount of income from work contribute to the intuitive calculation in the economic migration. The income-based valuation of the right to a certain sequence of income at a certain risk level properly integrates these factors as one value, providing a clear criterion of selection. Due to the fact that the labour market does not generate the values that allow the adaptation of the CAPM model, there was offered the original method of the risk premium valuation which provides the results analogous to those based on the CAPM model, and it was applied for the particular provinces in Poland. As a result, there was revealed the equity premium puzzle of the Polish labour market. Because of the significant amount of estimates, the obtained results are the first step towards the problem.
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publisher University of Applied Sciences in Bielsko-Biała
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series Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej
spelling doaj-art-01629029143d475caba73ca8c6e4822a2025-08-20T02:23:40ZengUniversity of Applied Sciences in Bielsko-BiałaZeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej2543-91032543-411X2016-02-01224Risk Premium for Loss of Employment in Polish RegionsJan Ostoj0Wyższa Szkoła finansów i Prawa w Bielsku-Białej Finansów i Technologii Informatycznych Bankowości i FinansówOn the basis of the income-based valuation method of intellectual capital of the region in the previous papers, the author discovers a need for a valuation of the risk premium which should be included in the rate that discounts income from work. Undoubtedly, both the loss of employment and the amount of income from work contribute to the intuitive calculation in the economic migration. The income-based valuation of the right to a certain sequence of income at a certain risk level properly integrates these factors as one value, providing a clear criterion of selection. Due to the fact that the labour market does not generate the values that allow the adaptation of the CAPM model, there was offered the original method of the risk premium valuation which provides the results analogous to those based on the CAPM model, and it was applied for the particular provinces in Poland. As a result, there was revealed the equity premium puzzle of the Polish labour market. Because of the significant amount of estimates, the obtained results are the first step towards the problem. https://asej.eu/index.php/asej/article/view/256risk premiumlabour marketequity premium puzzleeconomic migrationintellectual capital of the region.
spellingShingle Jan Ostoj
Risk Premium for Loss of Employment in Polish Regions
Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej
risk premium
labour market
equity premium puzzle
economic migration
intellectual capital of the region.
title Risk Premium for Loss of Employment in Polish Regions
title_full Risk Premium for Loss of Employment in Polish Regions
title_fullStr Risk Premium for Loss of Employment in Polish Regions
title_full_unstemmed Risk Premium for Loss of Employment in Polish Regions
title_short Risk Premium for Loss of Employment in Polish Regions
title_sort risk premium for loss of employment in polish regions
topic risk premium
labour market
equity premium puzzle
economic migration
intellectual capital of the region.
url https://asej.eu/index.php/asej/article/view/256
work_keys_str_mv AT janostoj riskpremiumforlossofemploymentinpolishregions