Wealth effects on job preferences

Luke Haywood

Labour Economics, 2016, vol. 38, issue C, 1-11

Abstract: Preferences over jobs depend on wages and non-wage aspects. Variation in wealth may change the importance of income as a motivation for working. Higher wealth levels may make good non-wage characteristics relatively more important. This hypothesis is tested empirically using a reduced form search model in which differential job leaving rates identify willingness to pay for non-wage aspects of jobs. Marginal willingness to pay for non-wage aspects (measured by “job satisfaction for work in itself”) is found to increase significantly after large windfall wealth gains in British panel data. Thus, wealth influences more than just the hours worked.

Keywords: Labour supply; Wealth; Job satisfaction; Duration models (search for similar items in EconPapers)
JEL-codes: J21 J28 J32 J64 (search for similar items in EconPapers)
Date: 2016
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Related works:
Journal Article: Wealth effects on job preferences (2016)
Working Paper: Too Rich to Do the Dirty Work?: Wealth Effects on the Demand for Good Jobs (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:38:y:2016:i:c:p:1-11

DOI: 10.1016/j.labeco.2015.10.002

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