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

  • Inmaculada Garc�a

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

  • José Alberto Molina

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

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.

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Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 20 (1999)
Issue (Month): 4 ()
Pages: 189-204

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Handle: RePEc:wly:mgtdec:v:20:y:1999:i:4:p:189-204
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  1. Bartik, Timothy J, 1987. "The Estimation of Demand Parameters in Hedonic Price Models," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 81-88, February.
  2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
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  13. 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 157-66, February.
  14. Epple, Dennis, 1987. "Hedonic Prices and Implicit Markets: Estimating Demand and Supply Functions for Differentiated Products," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 59-80, February.
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