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Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria

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  • Emilia Del Bono
  • Andrea Weber

Abstract

This article investigates the existence of compensating wage differentials across seasonal and long-term jobs that arise due to anticipated working time restrictions. Using longitudinal information from the Austrian administrative records, we derive a definition of seasonality based on observed regularities in employment patterns. As wages change across seasonal and long-term jobs for the same individual over time, we can control for individual-specific effects and use variation in the starting month of seasonal jobs as an exogenous predictor of anticipated unemployment. We find that employers pay, on average, a positive wage differential of about 11% for seasonal jobs.

Suggested Citation

  • Emilia Del Bono & Andrea Weber, 2008. "Do Wages Compensate for Anticipated Working Time Restrictions? Evidence from Seasonal Employment in Austria," Journal of Labor Economics, University of Chicago Press, vol. 26(1), pages 181-221.
    • Handle: RePEc:ucp:jlabec:v:26:y:2008:p:181-221
    DOI: 10.1086/522070
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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