Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization
AbstractI attempt to explain why compensating differentials for job disamenities are difficult to observe. I focus on the match between workersâ preferences for routine jobs and the variability in tasks associated with the job. Using data from the Wisconsin Longitudinal Study, I find that mismatched workers report lower job satisfaction and earn lower wages. Both male and female workers in routinized jobs earn, on average, 12% less than their counterparts in non-routinized jobs. Once preferences and mismatch are accounted for, this difference decreases to 8% for men and 5% for women. Accounting for mismatch is important when analyzing compensating differentials.
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Bibliographic InfoArticle provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.
Volume (Year): 73 (2011)
Issue (Month): 2 (04)
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Other versions of this item:
- Climent Quintana Domeque, 2010. "Preferences, comparative advantage, and compensating wage differentials for job routinization," Working Papers. Serie AD 2010-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Climent Quintana-Domeque, 2008. "Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization," Working Papers 1063, Princeton University, Department of Economics, Industrial Relations Section..
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
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