Search and Non-Wage Job Characteristics
AbstractThis paper quantifies the importance of non-wage job characteristics to workers by estimating a structural on-the-job search model. The model generalizes the standard search framework by allowing workers to search for jobs based on both wages and job-specific non-wage utility flows. Within the structure of the search model, data on accepted wages and wage changes at job transitions identify the importance of non-wage utility through revealed preference. The parameters of the model are estimated by simulated minimum distance using the 1997 cohort of the National Longitudinal Survey of Youth (NLSY97). The estimates reveal that utility from non-wage job characteristics plays an important role in determining job mobility, the value of jobs to workers, and the gains from job search. More specifically, non-wage utility accounts for approximately one-third of the total gains from job mobility. These large non-pecuniary gains from search are missed by search models which assume that the wage captures the entire value of a job to a worker.
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Bibliographic InfoPaper provided by U.S. Bureau of Labor Statistics in its series Working Papers with number 449.
Length: 43 pages
Date of creation: Sep 2011
Date of revision:
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More information through EDIRC
job search; non-wage job characteristics; wage growth; revealed preference; compensating differentials;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- D9 - Microeconomics - - Intertemporal Choice
- J4 - Labor and Demographic Economics - - Particular Labor Markets
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
- NEP-DGE-2011-10-15 (Dynamic General Equilibrium)
- NEP-LAB-2011-10-15 (Labour Economics)
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