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Compensating wage differentials and shift work preferences

  • Lanfranchi, Joseph
  • Ohlsson, Henry
  • Skalli, Ali

Workers with difficult working conditions can be expected to be com-pensated by higher wages. They may, for example, choose shift work because of compensating wages but it is also possible that they prefer shift work. The previous empirical evidence is mixed. We study if there are compensating wages for shift work by estimating a switching regression model with endogenous switching using French matched employer–employee data for male full time blue collar workers. It is crucial to adjust for selectivity and not to pool data for shift and day workers. A main result is that there is a significant shift premium, the wage rate for shift workers is 16 percent higher than for day workers. A second main result is that the shift premium is significant for shift work choice. This premium compensates workers who do not self–select into shift work. A 1 percentage point increase in the premium increases the shift work probability by 0.87 percentage points.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 74 (2002)
Issue (Month): 3 (February)
Pages: 393-398

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Handle: RePEc:eee:ecolet:v:74:y:2002:i:3:p:393-398
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  4. Lanfranchi, Joseph & Ohlsson, Henry & Skalli, Ali, 2001. "COMPENSATING WAGE DIFFERENTIALS AND SHIFT WORK PREFERENCES. Evidence from France," Working Papers in Economics 55, University of Gothenburg, Department of Economics.
  5. Ali Skalli & Mahmood Araï & Gérard Ballot, 1996. "Différentiels intersectoriels de salaire et caractéristiques des employeurs en France," Économie et Statistique, Programme National Persée, vol. 299(1), pages 37-58.
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  8. Joseph G. Altonji & Robert A. Shakotko, 1985. "Do Wages Rise With Job Seniority?," NBER Working Papers 1616, National Bureau of Economic Research, Inc.
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