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Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria

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Author Info
Emilia Del Bono
Andrea Weber

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Abstract

This article investigates the existence of compensating wage differentials across seasonal and long-term jobs that arise due to anticipated working time restrictions. Using longitudinal information from the Austrian administrative records, we derive a definition of seasonality based on observed regularities in employment patterns. As wages change across seasonal and long-term jobs for the same individual over time, we can control for individual-specific effects and use variation in the starting month of seasonal jobs as an exogenous predictor of anticipated unemployment. We find that employers pay, on average, a positive wage differential of about 11% for seasonal jobs.

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File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?id=doi:10.1086/522070
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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 26 (2008)
Issue (Month): ()
Pages: 181-221
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Handle: RePEc:ucp:jlabec:v:26:y:2008:p:181-221

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hofer, Helmut & Pichelmann, Karl & Schuh, Andreas-Ulrich, 2001. "Price and Quantity Adjustments in the Austrian Labour Market," Applied Economics, Taylor and Francis Journals, vol. 33(5), pages 581-92, April. [Downloadable!] (restricted)
  2. Assaad, Ragui & Tunali, Insan, 2002. "Wage formation and recurrent unemployment," Labour Economics, Elsevier, vol. 9(1), pages 17-61, February. [Downloadable!] (restricted)
  3. Hamermesh, Daniel S & Wolfe, John R, 1990. "Compensating Wage Differentials and the Duration of Wage Loss," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S175-97, January. [Downloadable!] (restricted)
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  4. Lalive, Rafael, 2003. " Did We Overestimate the Value of Health?," Journal of Risk and Uncertainty, Springer, vol. 27(2), pages 171-93, October. [Downloadable!] (restricted)
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  5. Topel, Robert H, 1984. "Equilibrium Earnings, Turnover, and Unemployment: New Evidence," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 500-522, October. [Downloadable!] (restricted)
  6. Garen, John, 1988. "Compensating Wage Differentials and the Endogeneity of Job Riskiness," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 9-16, February. [Downloadable!] (restricted)
  7. Whitney K. Newey & James L. Powell & Francis Vella, 1999. "Nonparametric Estimation of Triangular Simultaneous Equations Models," Econometrica, Econometric Society, vol. 67(3), pages 565-604, May.
  8. Moretti, Enrico, 2000. " Do Wages Compensate for Risk of Unemployment? Parametric and Semiparametric Evidence from Seasonal Jobs," Journal of Risk and Uncertainty, Springer, vol. 20(1), pages 45-66, January. [Downloadable!] (restricted)
  9. Alfred Stiglbauer & Florian Stahl & Rudolf Winter-Ebmer & Josef Zweimüller, 2002. "Job Creation and Job Destruction in a Regulated Labor Market: The Case of Austria," Working Papers 78, Oesterreichische Nationalbank (Austrian Central Bank). [Downloadable!]
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  1. David Card & Raj Chetty & Andrea Weber, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," IZA Discussion Papers 2590, Institute for the Study of Labor (IZA). [Downloadable!]
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