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Compensating wage differentials and voluntary job changes: Evidence from West Germany

  • Ernesto Villanueva

Does the labor market place wage premia on jobs that involve physical strain, job, insecurity or bad regulation of hours? This paper derives bounds on the monetary returns to these job disamenities in the West German labor market. We show that in a market with dispersion in both job characteristics and wages, the average wage change of workers who switch jobs voluntarily and opt for consuming more (less) disamenities,provides an upper (lower) bound on the market return to the disamenity. Using longitudinal information from workers in the German Socio Economic Panel, we estimate an upper bound of 5% and a lower bound of 3.5% for the market return to work strain in a job.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/738.pdf
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 738.

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Date of creation: Jan 2004
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Handle: RePEc:upf:upfgen:738
Contact details of provider: Web page: http://www.econ.upf.edu/

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