Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage

We use data on twins matched to register-based information on earnings to examine the long-standing puzzle of non-existent compensating wage differentials. The use of twin data allows us to remove otherwise unobserved productivity differences that were the prominent reason for estimation bias in the earlier studies. Using twin differences we find evidence for positive compensation of adverse working conditions in the labor market.

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Year of publication:	2014-10
Authors:	Böckerman, Petri ; Ilmakunnas, Pekka ; Vainiomäki, Jari
Institutions:	Institute for the Study of Labor (IZA)
Subject:	compensating differentials \| earnings \| unobserved ability \| productivity

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 8557 29 pages
Classification:	J28 - Safety; Accidents; Industrial Health; Job Satisfaction, Related Public Policy ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010959684