Job Amenities & Earnings Inequality

Alex Bell

MPRA Paper from University Library of Munich, Germany

Abstract: Previous research on prices of job amenities has suffered from simultaneity bias due to workers’ unobserved offer sets, resulting in “wrong-signed” compensating wage differentials. I propose a simple amenity pricing framework that uses an imprecise proxy for workers’ offer sets to identify amenity prices holding offer sets fixed. Using price estimates for a set of observed job characteristics across various public survey datasets, I find a large role for costly amenity substitution in explaining the gender pay gap (on the order of two-thirds) and little role for amenities to explain inequalities by race or by parent background.

Keywords: compensating differentials; inequality; occupational choice; gender; race (search for similar items in EconPapers)
JEL-codes: C18 C39 C51 J31 (search for similar items in EconPapers)
Date: 2020-05-01
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:118516

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