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Do Workers Value Flexible Jobs? A Field Experiment on Compensating Differentials

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  • Haoran He
  • David Neumark
  • Qian Weng

Abstract

We explore compensating differentials for job flexibility, using a field experiment conducted on a Chinese job board. Our job ads differ randomly regarding when one works (time flexibility) and where one works (place flexibility). We find strong evidence that workers value job flexibility - especially regarding place of work. Application rates are higher to flexible jobs, conditional on the salary offered. Additional survey evidence indicates that workers are willing to take lower pay for more flexible jobs. Non-experimental job board data do not indicate that workers value job flexibility, reinforcing the difficulty of estimating compensating differentials from observational data.

Suggested Citation

  • Haoran He & David Neumark & Qian Weng, 2019. "Do Workers Value Flexible Jobs? A Field Experiment on Compensating Differentials," Natural Field Experiments 00667, The Field Experiments Website.
    • Handle: RePEc:feb:natura:00667
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    Cited by:

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    2. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.
    3. Alexandre Mas & Amanda Pallais, 2020. "Alternative Work Arrangements," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 631-658, August.
    4. Carlos C. Duarte & Nuno D. Cortiços, 2022. "The Energy Efficiency Post-COVID-19 in China’s Office Buildings," Clean Technol., MDPI, vol. 4(1), pages 1-60, March.
    5. Clemens, Jeffrey, 2019. "Making Sense of the Minimum Wage: A Roadmap for Navigating Recent Research," MPRA Paper 94324, University Library of Munich, Germany.
    6. Kuan-Ming Chen & Ning Ding & John A. List & Magne Mogstad, 2020. "Reservation Wages and Workers’ Valuation of Job Flexibility: Evidence from a Natural Field Experiment," Working Papers 2020-124, Becker Friedman Institute for Research In Economics.
    7. Arntz, Melanie & Ben Yahmed, Sarra & Berlingieri, Francesco, 2018. "Working from Home: Heterogenous Effects on Hours Worked and Wages," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181630, Verein für Socialpolitik / German Economic Association.
    8. Pabilonia, Sabrina Wulff & Vernon, Victoria, 2020. "Telework and Time Use in the United States," IZA Discussion Papers 13260, Institute of Labor Economics (IZA).
    9. Kuan-Ming Chen & Min Ding & John List & Magne Mogstad, 2020. "Reservation Wages and Workers' Valuation of Job Flexibility: Evidence from a Natural Field Experiment," Natural Field Experiments 00715, The Field Experiments Website.
    10. Benny, Liza & Bhalotra, Sonia & Fernández, Manuel, 2021. "Occupation flexibility and the graduate gender wage gap in the UK," ISER Working Paper Series 2021-05, Institute for Social and Economic Research.

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