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How do workers decide their jobs? The influence of income, wage and job characteristics

Author

Listed:
  • Inmaculada García

    (Department of Economic Analysis, University of Zaragoza, Zaragoza, Spain)

  • José Alberto Molina

    (Department of Economic Analysis, University of Zaragoza, Zaragoza, Spain)

Abstract

This paper provides results on the economic decision-making process of Spanish workers, who decide their jobs from the effects of variations in the non-wage income, the wage and the prices of non-pecuniary job characteristics. To that end, we formulate a non-separable generalization of the Linear Expenditure System (NLES) as a joint model of labor supply and job characteristics demand, estimated separately for both males and females, using a 1991 Spanish survey. The main results show that: (i) some job characteristics have a positive effect on the wage, whereas others have a negative effect; (ii) the average percentage effect of employer size and the complexity index are higher for males than for females, with the fatal accident risk displaying similar values; (iii) if the non-wage income of every worker increases, these individuals will prefer to devote less hours to work, and will also prefer jobs in smaller companies and with a lower risk; and (iv) if the wage and hedonic prices of non-pecuniary job characteristics increase, then both males and females will prefer to reduce their labor supply, and devote their available time to jobs in bigger firms, with a higher risk and complexity. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Inmaculada García & José Alberto Molina, 1999. "How do workers decide their jobs? The influence of income, wage and job characteristics," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 189-204.
  • Handle: RePEc:wly:mgtdec:v:20:y:1999:i:4:p:189-204
    DOI: 10.1002/(SICI)1099-1468(199906)20:4<189::AID-MDE930>3.0.CO;2-S
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    References listed on IDEAS

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    1. Kahn, Shulamit & Lang, Kevin, 1988. "Efficient Estimation of Structural Hedonic Systems," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(1), pages 157-166, February.
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    Cited by:

    1. García, Lucia, 2018. "El mercado laboral en España desde la oferta: evolución reciente nacional y regional
      [Supply labour market in Spain: recent evolution at a national and regional level]
      ," MPRA Paper 85262, University Library of Munich, Germany.

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