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Too Rich to Do the Dirty Work?: Wealth Effects on the Demand for Good Jobs

  • Luke Haywood

Jobs offer different wages and different non-monetary working conditions. This paper investigates how the demand for non-monetary aspects evolves over changing wealth levels. Wages do not perfectly compensate individuals for differential utility of jobs in a labour market with informational frictions. Changes in wealth may then affect preferences for different jobs. Willingness to pay for non-monetary aspects of jobs (measured by job satisfaction for work "in itself") is found to increase with wealth shocks. Duration models are estimated based on the reduced form of a search model. Wealth may play an important role in labour market choices.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.435718.de/dp1355.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1355.

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Length: 43 p.
Date of creation: 2014
Date of revision:
Handle: RePEc:diw:diwwpp:dp1355
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