Do satisfactory working conditions contribute to explain earning differentials in Italy? A panel data approach

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Do satisfactory working conditions contribute to explain earning differentials in Italy? A panel data approach

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Ambra Poggi () (SEMEQ Department - Faculty of Economics - University of Eastern Piedmont)

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Ambra Poggi

Abstract

The aim of this paper is to analyze the wage differentials associated with non-pecuniary working conditions (distance to job, environment conditions, working times) using objective and subjective data. In fact, the individual can be compensated for unsatisfactory working conditions by higher wage (compensating wage differentials theories). Or, if productivity is positively associated with satisfaction, higher wages can be offered to more productive workers, that are workers with higher level of satisfaction (wage efficiency theories). Therefore, we estimate a wage equation with variables that capture workers’ subjective view about their current working conditions allowing for unobserved individual heterogeneity. Finally, we quantify any systematic differences in the wage differentials associated with nonpecuniary working conditions by occupation in order to infer whether any apparent productivity effects of flextime may be relatively greater than the hedonic effects for certain occupations.

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Paper provided by SEMEQ Department - Faculty of Economics - University of Eastern Piedmont in its series Working Papers with number 104.

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Date of creation: Sep 2005
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Handle: RePEc:upo:upopwp:104

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Find related papers by JEL classification:
J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-01-24 (All new papers)
NEP-LAB-2006-01-24 (Labour Economics)

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This page was last updated on 2009-11-19.

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