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Are there pecuniary compensations for working conditions?

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  • Fernández, Rosa M.
  • Nordman, Christophe J.

Abstract

In this paper we assess the relative contribution of working conditions to wage determination with an emphasis on differences along the earnings distribution. A survey of British employees in 2001 rich in questions regarding the job post enables us to separate the contribution of working conditions, job attributes and individual characteristics to the process of wage determination. Standard wage equations reveal that covariates such as having "repetitive job" and using generic skills such as "literacy" or "customer handling skills" are associated with significant premiums and penalties. Quantile regressions confirm the presence of penalties to poor working conditions, such as "working to tight deadlines", that are significant in the middle section of the earnings distribution and robust to the inclusion of a wide range of controls for person, firm and other job characteristics. Counterfactual decompositions at quantiles show that, despite the apparent penalty, there are pecuniary compensations to poor working conditions around the first quartile and the median of the earnings distribution.

Suggested Citation

  • Fernández, Rosa M. & Nordman, Christophe J., 2009. "Are there pecuniary compensations for working conditions?," Labour Economics, Elsevier, vol. 16(2), pages 194-207, April.
  • Handle: RePEc:eee:labeco:v:16:y:2009:i:2:p:194-207
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Huu Chi Nguyen & Christophe J. Nordman & François Roubaud, 2013. "Who Suffers the Penalty?: A Panel Data Analysis of Earnings Gaps in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1694-1710, December.
    2. Nordman, Christophe J. & Pasquier-Doumer, Laure, 2015. "Transitions in a West African labour market: The role of family networks," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 74-85.
    3. S. Cicognani & M. Cioni & M. Savioli, 2016. "The secret to job satisfaction is low expectations: How perceived working conditions differ from actual ones," Working Papers wp1083, Dipartimento Scienze Economiche, Universita' di Bologna.
    4. Lechmann, Daniel S. J., 2013. "Can working conditions explain the return-to-entrepreneurship puzzle?," Discussion Papers 86, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    5. Nordman, Christophe J. & Rakotomanana, Faly & Roubaud, François, 2016. "Informal versus Formal: A Panel Data Analysis of Earnings Gaps in Madagascar," World Development, Elsevier, vol. 86(C), pages 1-17.
    6. repec:dau:papers:123456789/12321 is not listed on IDEAS
    7. Christophe Nordman & Laure Pasquier-Doumer, 2013. "Transitions in a West African Labour Market: The Role of Social Networks," Working Papers DT/2013/12, DIAL (Développement, Institutions et Mondialisation).
    8. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2011. "Job security and employee well-being: Evidence from matched survey and register data," Labour Economics, Elsevier, vol. 18(4), pages 547-554, August.
    9. Simona Cicognani & Martina Cioni & Marco Savioli, 2017. "Conditions at work: how actual and expected working conditions drive perception," Working Paper series 17-17, Rimini Centre for Economic Analysis.
    10. Bocquier, Philippe & Nordman, Christophe J. & Vescovo, Aude, 2010. "Employment Vulnerability and Earnings in Urban West Africa," World Development, Elsevier, vol. 38(9), pages 1297-1314, September.
    11. repec:dau:papers:123456789/12204 is not listed on IDEAS
    12. repec:dau:papers:123456789/10601 is not listed on IDEAS
    13. repec:dau:papers:123456789/11236 is not listed on IDEAS
    14. Rafael Muñoz de Bustillo & Enrique Fernández-Macías & José-Ignacio Antón & Fernando Esteve, 2011. "Measuring More than Money," Books, Edward Elgar Publishing, number 14072.
    15. repec:dau:papers:123456789/4294 is not listed on IDEAS
    16. Ndamsa Dickson Thomas & Baye Mendjo Francis & Epo Boniface Ngah, 2013. "Responsiveness of Private Sector Household Income to Employment Vulnerability in Cameroon," EuroEconomica, Danubius University of Galati, issue 1(32), pages 153-177, May.
    17. Böckerman, Petri & Ilmakunnas, Pekka & Johansson, Edvard, 2009. "Creative destruction and employee well-being," MPRA Paper 15447, University Library of Munich, Germany.

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