Estimating Compensating Wage Differentials Using Voluntary Job Changes: Evidence from Germany
AbstractThe author develops a model predicting that in a labor market that attaches a wage premium to jobs with a disamenity (a compensating wage differential), the premium's upper bound will be defined by the average wage change of voluntary job movers whose consumption of the disamenity rises as a result of their move; its lower bound, by the wage change of those whose consumption of the disamenity falls. These predictions will not hold if, as predicted by a "segmented" labor market model, the labor market attaches a wage penalty to workplace disamenities. Using longitudinal data on job characteristics and wages in Germany in 1984-2001, the author estimates the market returns to four workplace disamenities: heavy workload, job insecurity, poor hours regulation, and a mismatch between skills possessed and skills required. The results broadly support the existence of compensating differentials in the German labor market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by ILR Review, Cornell University, ILR School in its journal ILR Review.
Volume (Year): 60 (2007)
Issue (Month): 4 (July)
Postal: 381 Ives East, Cornell University, Ithaca, NY 14853-3901
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Lechmann, Daniel S. J., 2013. "Can working conditions explain the return-to-entrepreneurship puzzle?," Discussion Papers 86, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Martinez Perez, Jorge Eduardo & Mendez Martinez, Ildefonso, 2008. "¿Qué podemos saber sobre el Valor Estadístico de la Vida en España utilizando datos laborales?," MPRA Paper 11165, University Library of Munich, Germany.
- Giovanni Russo & Jos Ommeren & Piet Rietveld, 2012.
"The university workers’ willingness to pay for commuting,"
Springer, vol. 39(6), pages 1121-1132, November.
- Giovanni Russo & Jos van Ommeren & Piet Rietveld, 2010. "The University Workers' Willingness to pay for Commuting," Tinbergen Institute Discussion Papers 10-086/3, Tinbergen Institute.
- Van Ommeren, Jos & Fosgerau, Mogens, 2009.
"Workers' marginal costs of commuting,"
Journal of Urban Economics,
Elsevier, vol. 65(1), pages 38-47, January.
- MORIKAWA Masayuki, 2010. "Insecurity of Employment and Work-Life Balance: From the viewpoint of compensating wage differentials," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 10052, Research Institute of Economy, Trade and Industry (RIETI).
- Usui, Emiko, 2009. "Wages, non-wage characteristics, and predominantly male jobs," Labour Economics, Elsevier, Elsevier, vol. 16(1), pages 52-63, January.
- Schaffner, Sandra & Spengler, Hannes, 2010. "Using job changes to evaluate the bias of value of a statistical life estimates," Resource and Energy Economics, Elsevier, Elsevier, vol. 32(1), pages 15-27, January.
- Christina Felfe, 2009.
"The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work,"
SOEPpapers on Multidisciplinary Panel Data Research
247, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Christina Felfe, 2009. "The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work," CESifo Working Paper Series 2743, CESifo Group Munich.
- Wells, Robert, 2010. "An examination of the utility bearing characteristics of occupations: A factor analytical approach," Economics Letters, Elsevier, Elsevier, vol. 108(3), pages 296-298, September.
- Felfe, Christina, 2012. "The motherhood wage gap: What about job amenities?," Labour Economics, Elsevier, Elsevier, vol. 19(1), pages 59-67.
- Stefan Arent & Wolfgang Nagl, 2011. "Risikokompensation hochqualifizierter Arbeitnehmer am deutschen Arbeitsmarkt," ifo Dresden berichtet, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 18(03), pages 08-11, 06.
- Kniesner, Thomas J. & Viscusi, W. Kip & Ziliak, James P., 2012. "Willingness to Accept Equals Willingness to Pay for Labor Market Estimates of the Value of Statistical Life," IZA Discussion Papers 6816, Institute for the Study of Labor (IZA).
- Stefan Arent & Wolfgang Nagl, 2011. "The Price of Security: On the Causality and Impact of Lay-off Risks on Wages," Ifo Working Paper Series Ifo Working Paper No. 100, Ifo Institute for Economic Research at the University of Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ILR Review).
If references are entirely missing, you can add them using this form.