Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria
AbstractIn this paper we investigate the existence of compensating wage differentials across seasonal and non seasonal jobs, which arise due to anticipated working time restrictions. We build on a theoretical model by Abowd and Ashenfelter (1981), which links the compensating wage differential to variation in individual unemployment through the effect of the unemployment insurance and the compensated labor supply elasticity. Since the Austrian labor market is characterized by an unusually high share of seasonal employment, our data provides the ideal setting in which to empirically test this model. We use the very rich information contained in the Austrian administrative records to derive a flexible definition of seasonal employment based on observed regularities in employment patterns. We find that employers pay on average a positive wage differential of about 11% for seasonal jobs and that the unemployment insurance system contributes a similar amount.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2242.
Length: 55 pages
Date of creation: Aug 2006
Date of revision:
Publication status: published in: Journal of Labor Economics, 2008, 26(1), 181-221
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Other versions of this item:
- Emilia Del Bono & Andrea Weber, 2008. "Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria," Journal of Labor Economics, University of Chicago Press, vol. 26, pages 181-221.
- Del Bono, Emilia & Weber, Andrea, 2006. "Do wages compensate for anticipated working time restrictions? Evidence from seasonal employment in Austria," ISER Working Paper Series 2006-37, Institute for Social and Economic Research.
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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