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Pecuniary Returns to Working Conditions

Author

Listed:
  • Christophe Jalil Nordman

    (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, IFP - Institut Français de Pondichéry - MEAE - Ministère de l'Europe et des Affaires étrangères - CNRS - Centre National de la Recherche Scientifique)

  • Smriti Sharma

    (Newcastle University Business School)

Abstract

Using matched worker-firm data from three waves of the Vietnam Small and Medium Enterprises data, we examine whether workers are compensated with higher wages for working in vulnerable jobs and unfavourable working conditions. Wage equations indicate that there are no clear compensating mechanisms for working in poor conditions, for having an informal contract, and for having few financial benefits. Quantile regressions show that workers in the upper tail of the wage distribution are more likely to be penalized for working in adverse working conditions. Employees recruited through official hiring channels with an informal contract earn less than employees hired through social networks. Upon estimating mean decompositions of wage gaps based on working conditions, we find that the gap is almost entirely explained by the conjunction of worker, job, and firm characteristics in 2015, in contrast to the previous survey year of 2013.

Suggested Citation

  • Christophe Jalil Nordman & Smriti Sharma, 2020. "Pecuniary Returns to Working Conditions," Post-Print hal-02887615, HAL.
    • Handle: RePEc:hal:journl:hal-02887615
    DOI: 10.1093/oso/9780198851189.003.0010
    as

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