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Wealth Effects on Job Preferences

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  • Haywood, Luke

Abstract

Preferences over jobs depend on wages and non-wage aspects. Variation in wealth may change the importance of income as a motivation for working. Higher wealth levels may make good non-wage characteristics relatively more important. This hypothesis is tested empirically using a reduced form search model in which differential job leaving rates identify willingness to pay for non-wage aspects of jobs. Marginal willingness to pay for non-wage aspects (measured by “job satisfaction for work in itself”) is found to increase significantly after large windfall wealth gains in British panel data. Thus, wealth influences more than just the hours worked.

Suggested Citation

  • Haywood, Luke, 2016. "Wealth Effects on Job Preferences," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1-11.
  • Handle: RePEc:zbw:espost:129502
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    References listed on IDEAS

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    More about this item

    Keywords

    labor supply; wealth; job satisfaction; duration models;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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