Firm Pay, Amenities, and Inequality

Sydnee Caldwell, Ingrid Haegele and Jörg Heining

No 35149, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: J31 J32 J33 (search for similar items in EconPapers)
Date: 2026-04
Note: LS
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