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

  • Del Bono, Emilia
  • Weber, Andrea

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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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2006-37.

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Date of creation: 01 Jul 2006
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Publication status: published
Handle: RePEc:ese:iserwp:2006-37
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  1. Daniel S. Hamermesh & John R. Wolfe, 1986. "Compensating Wage Differentials and the Duration of Wage Loss," NBER Working Papers 1887, National Bureau of Economic Research, Inc.
  2. Garen, John, 1988. "Compensating Wage Differentials and the Endogeneity of Job Riskiness," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 9-16, February.
  3. Alfred M Stiglbauer & Florian Stahl & Rudolf Winter-Ebmer & Josef Zweimüller, 2002. "Job creation and job destruction in a regulated labor market: The case of Austria," Economics working papers 2002-05, Department of Economics, Johannes Kepler University Linz, Austria.
  4. John M. Abowd & Orley C. Ashenfelter, 1981. "Anticipated Unemployment, Temporary Layoffs, and Compensating Wage Differentials," NBER Chapters, in: Studies in Labor Markets, pages 141-170 National Bureau of Economic Research, Inc.
  5. Moretti, Enrico, 2000. "Do Wages Compensate for Risk of Unemployment? Parametric and Semiparametric Evidence from Seasonal Jobs," Journal of Risk and Uncertainty, Springer, vol. 20(1), pages 45-66, January.
  6. Rafael Lalive, . "Did we Overestimat the Value of Health?," IEW - Working Papers 060, Institute for Empirical Research in Economics - University of Zurich.
  7. Whitney K. Newey & James L. Powell & Francis Vella, 1999. "Nonparametric Estimation of Triangular Simultaneous Equations Models," Econometrica, Econometric Society, vol. 67(3), pages 565-604, May.
  8. Helmut Hofer & Karl Pichelmann & Andreas-Ulrich Schuh, 2001. "Price and quantity adjustments in the Austrian labour market," Applied Economics, Taylor & Francis Journals, vol. 33(5), pages 581-592.
  9. Topel, Robert H, 1984. "Equilibrium Earnings, Turnover, and Unemployment: New Evidence," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 500-522, October.
  10. Richard Blundell & James Powell, 2001. "Endogeneity in nonparametric and semiparametric regression models," CeMMAP working papers CWP09/01, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  11. Assaad, Ragui & Tunali, Insan, 2002. "Wage formation and recurrent unemployment," Labour Economics, Elsevier, vol. 9(1), pages 17-61, February.
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