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High-Pressure, High-Paying Jobs?

Author

Listed:
  • Markus Nagler

    (University of Erlangen-Nuremberg, CESifo, and LASER)

  • Johannes Rincke

    (University of Erlangen-Nuremberg and CESifo)

  • Erwin Winkler

    (University of Erlangen-Nuremberg and LASER)

Abstract

Work-related stress has reportedly increased over time. Using worker-level survey and experimental data, we investigate the labor market consequences of work pressure. We build a measure of pressure strongly associated with adverse health outcomes and show that pressure comes with a sizable earnings premium, reflecting workers' willingness-to-pay to avoid pressure. As expected, we do not find a premium among civil servants who face strong labor market frictions. Our experimental evidence is consistent with workers sorting into high-pressure jobs and with a sizable market-level compensating differential. Differences in the prevalence and valuation of work pressure explain substantial shares of wage inequality.

Suggested Citation

  • Markus Nagler & Johannes Rincke & Erwin Winkler, 2025. "High-Pressure, High-Paying Jobs?," The Review of Economics and Statistics, MIT Press, vol. 107(6), pages 1471-1484, November.
    • Handle: RePEc:tpr:restat:v:107:y:2025:i:6:p:1471-1484
    DOI: 10.1162/rest_a_01362
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