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

Petri Böckerman (), Pekka Ilmakunnas and Jari Vainiomäki ()

No 8557, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: compensating differentials; earnings; unobserved ability; productivity (search for similar items in EconPapers)
JEL-codes: J28 J31 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-10
New Economics Papers: this item is included in nep-eff, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published - published in: The Manchester School, 2018, 86 (2), 155-177

Downloads: (external link)
https://docs.iza.org/dp8557.pdf (application/pdf)

Related works:
Journal Article: Using Twins to Resolve the Twin Problem of Having a Bad Job and a Low Wage (2018)
Working Paper: Using twins to resolve the twin problem of having a bad job and a low wage (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp8557

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().