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Do wages compensate for anticipated working time restrictions? Evidence from seasonal employment in Austria

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  • Del Bono, Emilia
  • Weber, Andrea

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.
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Suggested Citation

  • Del Bono, Emilia & Weber, Andrea, 2006. "Do wages compensate for anticipated working time restrictions? Evidence from seasonal employment in Austria," ISER Working Paper Series 2006-37, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2006-37
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    File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2006-37.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Lukas Inderbitzin & Stefan Staubli & Josef Zweimüller, 2016. "Extended Unemployment Benefits and Early Retirement: Program Complementarity and Program Substitution," American Economic Journal: Economic Policy, American Economic Association, vol. 8(1), pages 253-288, February.
    2. David Card & David S. Lee & Zhuan Pei & Andrea Weber, 2015. "Inference on Causal Effects in a Generalized Regression Kink Design," Econometrica, Econometric Society, vol. 83, pages 2453-2483, November.
    3. René Böheim & Thomas Leoni, 2011. "Firms’ moral hazard in sickness absences," NRN working papers 2011-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    4. David Card & Raj Chetty & Andrea Weber, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," American Economic Review, American Economic Association, vol. 97(2), pages 113-118, May.
    5. David E. Card & David S. Lee & Zhuan Pei & Andrea Weber, 2012. "Nonlinear Policy Rules and the Identification and Estimation of Causal Effects in a Generalized Regression Kink Design," NRN working papers 2012-14, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    6. Thomas Leoni, 2010. "Differences in Sick Leave Between Employed and Unemployed Workers. What Do They Tell Us About the Health Dimension of Unemployment?," WIFO Working Papers 372, WIFO.
    7. Wolfgang Nagl, 2014. "Better Safe than Sorry? The Effects of Income Risk and Unemployment Risk on Wages," LABOUR, CEIS, vol. 28(3), pages 251-268, September.
    8. David Card & David S. Lee & Zhuan Pei & Andrea Weber, 2017. "Regression Kink Design: Theory and Practice," Advances in Econometrics,in: Regression Discontinuity Designs, volume 38, pages 341-382 Emerald Publishing Ltd.
    9. Böheim, Renè & Horvath, Gerard Thomas & Winter-Ebmer, Rudolf, 2011. "Great expectations: Past wages and unemployment durations," Labour Economics, Elsevier, vol. 18(6), pages 778-785.
    10. Nora Prean & Karin Mayr, 2012. "Unemployment of immigrants and natives over the business cycle: evidence from the Austrian labor market," NRN working papers 2012-10, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    11. Helmut Hofer, 2007. "The Severance Pay Reform in Austria ("Abfertigung neu")," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 5(4), pages 41-48, 06.
    12. repec:lan:wpaper:2922 is not listed on IDEAS
    13. repec:lan:wpaper:3016 is not listed on IDEAS
    14. Schmillen, Achim & Umkehrer, Matthias, 2013. "The scars of youth : effects of early-career unemployment on future unemployment experience," IAB Discussion Paper 201306, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Arash Nekoei & Andrea Weber, 2015. "Recall Expectations and Duration Dependence," American Economic Review, American Economic Association, vol. 105(5), pages 142-146, May.
    16. Stefan Staubli, 2009. "Tightening the Purse Strings: The Effect of Stricter DI Eligibility Criteria on Labor Supply," NRN working papers 2009-30, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    17. Wolfgang Nagl, 2014. "Lohnrisiko und Altersarmut im Sozialstaat," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 54, April.
    18. MORIKAWA Masayuki, 2010. "Insecurity of Employment and Work-Life Balance: From the viewpoint of compensating wage differentials," Discussion papers 10052, Research Institute of Economy, Trade and Industry (RIETI).
    19. C. Simon Fan & Oded Stark, 2011. "A Theory Of Migration As A Response To Occupational Stigma," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(2), pages 549-571, May.
    20. Schmillen, Achim & Möller, Joachim, 2012. "Distribution and determinants of lifetime unemployment," Labour Economics, Elsevier, vol. 19(1), pages 33-47.
    21. C Green & J S Heywood, 2007. "Are flexible contracts bad for workers? Evidence from job satisfaction data," Working Papers 590927, Lancaster University Management School, Economics Department.
    22. repec:ces:ifodic:v:5:y:2007:i:4:p:14567303 is not listed on IDEAS
    23. repec:lan:wpaper:3171 is not listed on IDEAS

    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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