Preferences, Comparative Advantage, and Compensating Wage Differentials for Job Routinization
In this paper I attempt to explain why labor economists typically have not been able to find much evidence on compensating wage differentials for job disamenities, except for risk of death. The key insight here is that, although workers need to be compensated when their preferences do not match the requirements for performing a job task, the occurrence of mismatch also decreases productivity, reducing the surplus to be divided between workers and firms, and decreasing wages. I focus on the match between workers¿ preferences for routine jobs and the variability in tasks associated with the job. Using data from the Wisconsin Longitudinal Study, I find that mismatched workers earn lower wages and that both male and female workers in routinized jobs earn, on average, 5.5% and 7% less than their counterparts in non-routinized jobs. However, once preferences and mismatch are accounted for, this difference decreases to 2% for men and 4% for women. These findings suggest that accounting for mismatch is important when analyzing compensating wage differentials.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 73 (2011)
Issue (Month): 2 (04)
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0305-9049
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0305-9049|
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.:
- Lucas, Robert E B, 1977. "Hedonic Wage Equations and Psychic Wages in the Returns to Schooling," American Economic Review, American Economic Association, vol. 67(4), pages 549-58, September.
- Hwang, Hae-shin & Reed, W Robert & Hubbard, Carlton, 1992. "Compensating Wage Differentials and Unobserved Productivity," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 835-58, August.
- Cuberes, David & Dougan, William, 2009.
"How Endogenous Is Money? Evidence from a New Microeconomic Estimate,"
17744, University Library of Munich, Germany.
- David Cuberes & William R. Dougan, 2010. "How Endogenous Is Money? Evidence from a New Microeconomic Estimate," Working Papers. Serie AD 2010-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- McNabb, Robert, 1989. "Compensating Wage Differentials: Some Evidence for Britain," Oxford Economic Papers, Oxford University Press, vol. 41(2), pages 327-38, April.
- Claudia Goldin & Lawrence F. Katz & Ilyana Kuziemko, 2006.
"The Homecoming of American College Women: The Reversal of the College Gender Gap,"
NBER Working Papers
12139, National Bureau of Economic Research, Inc.
- Claudia Goldin & Lawrence F. Katz & Ilyana Kuziemko, 2006. "The Homecoming of American College Women: The Reversal of the College Gender Gap," Journal of Economic Perspectives, American Economic Association, vol. 20(4), pages 133-156, Fall.
- Goldin, Claudia & Kuziemko, Ilyana & Katz, Lawrence, 2006. "The Homecoming of American College Women: The Reversal of the College Gender Gap," Scholarly Articles 2962611, Harvard University Department of Economics.
- Marco van der Leij & Sanjeev Goyal, 2006.
"Strong Ties in a Small World,"
Tinbergen Institute Discussion Papers
06-008/1, Tinbergen Institute.
- Daniel, Christophe & Sofer, Catherine, 1998.
"Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence for France,"
Journal of Labor Economics,
University of Chicago Press, vol. 16(3), pages 546-75, July.
- Christophe Daniel & Catherine Sofer, 1998. "Bargaining, Compensating Wage Differentials, and Dualism of the Labor Market: Theory and Evidence for France," Post-Print halshs-00367153, HAL.
- Borghans Lex & Weel Bas ter & Weinberg Bruce A., 2007.
"Interpersonal Styles and Labor Market Outcomes,"
ROA Research Memorandum
001, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Lex Borghans & Bas ter Weel & Bruce A. Weinberg, 2007. "Interpersonal Styles and Labor Market Outcomes," NBER Working Papers 12846, National Bureau of Economic Research, Inc.
- Borghans, Lex & ter Weel, Bas & Weinberg, Bruce A., 2006. "Interpersonal Styles and Labor Market Outcomes," IZA Discussion Papers 2466, Institute for the Study of Labor (IZA).
- Weinberg, Bruce A. & Borghans, Lex & Weel, Bas ter, 2006. "Interpersonal Styles and Labor Market Outcomes," MERIT Working Papers 045, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Kevin Lang & Sumon Majumdar, 2003. "The Pricing of Job Characteristics When Markets Do Not Clear: Theory and Implications," NBER Working Papers 9911, National Bureau of Economic Research, Inc.
- José J. Sempere Monerris & Rafael Moner Colonques & Amparo Urbano Salvador, 2010. "Trade liberalization in vertically related markets," Working Papers. Serie AD 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Jeffrey S. Zax & Daniel I. Rees, 2002. "IQ, Academic Performance, Environment, and Earnings," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 600-616, November.
When requesting a correction, please mention this item's handle: RePEc:bla:obuest:v:73:y:2011:i:2:p:207-229. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.