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The Shift Premium: Evidence from a Discrete Choice Experiment

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  • Desiere, Sam

    (Ghent University)

  • Walter, Christian

    (Ghent University)

Abstract

Shift work is a widespread but understudied phenomenon. This paper examines one specific aspect of shift work: the shift premium. To this end, we included a discrete choice experiment in an online survey targeted at night and shift workers. Respondents chose between a standard 9 am - 5 pm job paying €15 per hour and a job with shift work in which the wage randomly varied between €12 and €20. The results show that respondents demand sizeable shift premiums to prefer shift over daytime work, with higher premiums for more onerous working hours such as night shifts or rotating shifts. We observe substantial heterogeneity in the shift premium across respondents and provide suggestive evidence of labour market sorting.

Suggested Citation

  • Desiere, Sam & Walter, Christian, 2023. "The Shift Premium: Evidence from a Discrete Choice Experiment," IZA Discussion Papers 16460, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16460
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    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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