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Firm Pay, Amenities, and Inequality

Author

Listed:
  • Sydnee Caldwell
  • Ingrid Haegele
  • Jörg Heining

Abstract

We estimate firm-specific amenity valuations using discrete choice experiments embedded in a large-scale survey of German workers linked to administrative records. Workers rank hypothetical offers from real firms they would consider joining, with randomized wages identifying money-metric valuations. Valuations vary substantially across firms and demographic groups, yet a single index performs surprisingly well. Valuations are approximately orthogonal to firm wage premia; they therefore do not offset between-firm wage inequality. However, male-female differences in amenity valuations explain part of the gender wage gap.

Suggested Citation

  • Sydnee Caldwell & Ingrid Haegele & Jörg Heining, 2026. "Firm Pay, Amenities, and Inequality," NBER Working Papers 35149, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35149
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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